SEC Proposes New Rules for General Solicitation of Private Securities

stansburylegal.com

So contrary to the scenario lots of people were worrying about (or salivating over), equity crowdfunding will still be restricted to accredited investors. I think this is a good thing. It won't completely prevent scams, I'm sure, but will help limit the damage they could do.

This proposed rule does not relate to the crowdfunding provision of the JOBS Act.

The SEC has still not made public any information about how they plan to amend their rules to implement the crowdfunding provision. But the act stipulates that in some circumstances investment will be open to the general public, not just accredited investors, so stay tuned.

Pash is right. No word yet on crowdfunding. It will be interesting to see how this change to the general-solicitation rules impacts the crowdfunding portion of the bill. The provisions are somewhat contradictory, so long as the accredited-investor limitation remains.

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