A recent article by Jason Best and Sherwood Neiss of CFIRA discusses the SEC’s recent proposed rules which would establish various different classes of investors. SoMoLend feels the need to clarify that this would primarily affect Reg D accredited investors. While the article is accurate, this will not affect most crowdfunding platforms including SoMo which is considered a portal. However, the rules would strongly impact broker dealers. To read the full article by Best and Neiss, please see below.
“Disappointing news came out of the SEC meeting yesterday designed to open the way for crowdfunding in the U.S. Rather than lifting the ban on general solicitation (we’ll explain that in a minute) in order to make it possible for more people to invest in American startups, the SEC proposed rules that would establish various different classes of investors, each perhaps with its own regulations. Needless to say, this move could make it more rather than less complicated for people to invest in startups, erecting new roadblocks rather than clearing away old ones.” Click here to read more