Last week, the North American Securities Administrators Association (NASAA) issued a statement in support of updating Rule 147 and Rule 504 of Reg D – rules that impact intrastate crowdfunding. The statement by NASAA supported a letter sent out by several members of the Congress the very same day.
NASAA President Mike Rothman, who is also the Minnesota Commissioner of Commerce, released the statement;
“NASAA has strongly supported the SEC’s efforts to modernize Rules 147 and 504, and we are encouraged to see members of Congress, led by Rep. Tom Emmer (R-MN) and Rep. Gwen Moore (D-WI), weigh in to support the SEC’s important proposed actions. These key changes will benefit small and local businesses conducting intrastate crowdfunding and regional securities offerings to raise capital, while maintaining important investor protections.
“The much-needed improvements to Rules 147 and 504 could provide a tremendous benefit to small businesses in the 35 U.S. jurisdictions that have regulations to implement intrastate crowdfunding exemptions.
“We are encouraged that many commenters have joined NASAA in their strong support for the proposed rule amendments, which we hope the SEC will finalize this year. As state regulators closest to small, local businesses that rely on Rules 147 and 504, and the investors that participate in those offerings, we look forward to the changes proposed in both rules.”
The letter by 15 members of Congress said the states are in a better position to assess offering caps and asked that the SEC not limit the exemption to the proposed $5 million. The coordinated Congressional / NASAA message should certainly help the SEC in its final rulemaking process.
The letter as submitted to the SEC is embedded below.
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