SEC’s Proposed Rule on General Solicitation Reads, “Sorry…Please Hold… It’s Too Complicated for Us”

Editor's note: Jason Best and Sherwood Neiss led the U.S. fight to legalize debt and equity based crowdfunding, co-authored Crowdfund Investing for Dummies and foundedCrowdfund Capital Advisors where they provide strategy and technology services those seeking to benefit from crowdfund investing. Hopes for startup crowfunding will have to wait for the federal bureaucracy to give it their stamp of approval: earlier this week the Securities and Exchange Commission (SEC) came out with a draft version of what they have in mind. Oddly enough, it doesn’t say much other than proceed with caution. Now the public has 30 days to comment before the SEC takes all those comments together to come out with the law. Coming out with a draft puts a hold on the ability of scrappy innovators to collect funding from their friends and family, further delays the ability of our nation’s entrepreneurs to innovate and create jobs and adds more confusion to laws that were meant to ease regulations. The result of this action will increase capital flows to securities attorneys and NOT entrepreneurs.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/gKtXvpIKaPA/

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