The NLCFA Welcomes the SEC's Approval of Title III: Equity Crowdfunding

Miami, FL, October 30, 2015 (Newswire.com) - The National Crowdfunding Association (NLCFA) welcomes the Securities Exchange Commission (SEC) approval of Crowdfunding regulation on a vote of 3 to 1 today. After a 3 year process, Equity Crowdfunding, Title III of the Jumpstart Our Business Startups (JOBS) Act of 2012, is the last piece to be approved.  In her opening statement, SEC Chair Mary Jo White said, “Crowdfunding is an evolving method of raising money using the internet, which to date has generally not involved the offer of a share in any financial returns or profits from business activities.  Doing so currently triggers the application of the full suite of federal securities laws, both for the issuers making the offerings and the brokers who intermediate them.”  The rules are expected to take effect 180 days after published on Jan 29, 2016.

The expansion of the private capital markets to include retail investors is truly revolutionary but it must be approached with the appropriate safe guards and controls.   The NLCFA stands ready to support the industry, investors and regulators in the implementation of these new rules in the most effective and compliant manner possible to foster a prosperous crowdfunding industry.

The National Crowdfunding Association's mission is to support, educate and advocate for the crowd, entrepreneurs, and industry professionals to ensure crowdfunding is beneficial and empowering to all participants."

Lauren Leibowitz, Membership Manager

When the proposed crowdfunding rules were released in Oct 2013, The National Crowdfunding Association submitted 1 of the 480 comment letters that led to the revised rules of today. “The National Crowdfunding Association’s mission is to support, educate and advocate for the crowd, entrepreneurs, and industry professionals to ensure crowdfunding is beneficial and empowering to all participants.” says Lauren Leibowitz, NLCFA Membership Manager.

In the coming days and months, the NLCFA will provide a clearing house of information on the new crowdfunding rules and relevant industry information edia networks, @NLCFA.    Welcome to the new Crowdfunding world.