The Massachusetts Securities Division will be holding a public hearing today at 10AM to review the incorporated “emergency regulation” for intrastate investment crowdfunding. While the meeting will occur this morning, written comments will be accepted until 5PM today. This is part of the process prior to permanently adopting the rules that were announced this past January without legislation action. Regulators had requested specific feedback on 15 questions to help sculpt rules.
As it stands now, the Massachusetts crowdfunding exemption allow a Massachusetts business to raise up to $1 million over a 12 month period for a single offering conducted entirely in the state.
Massachusetts has joined a growing number of states pushing forward with localized exemptions in light of the ongoing delay with finalized rules of Title III of the JOBS Act that legalized retail crowdfunding. Currently only accredited crowdfunding is authorized under Title II of the Act. Reg A+, or Title IV of the JOBS Act, will see finalized rules this week. Title IV will allow funding rounds of up to $50 million and is described as a “mini-IPO” by some industry advocates.
Written comments will be accepted until 5:00pm on Tuesday, March 24, 2015, and may be emailed to [email protected] (subject: “Crowdfunding Regulation”), faxed to (617) 248-0177 (attn.: “Crowdfunding Regulation”), brought to the public hearing, or mailed to the following address: Massachusetts Securities Division, Attn: Crowdfunding Regulation, 1 Ashburton Place, Room 1701, Boston, MA 02108.