Whoa, says the SEC. Crowdfunding is going to be legal but it ain’t legal yet. Remember what I said about all investment crowdfunding having to be done through registered portals, and because there ARE no registered portals yet, there IS no investment crowdfunding? The SEC has just reminded us of that. So let’s reprise. Any kind of “market conditioning,” ie, something that makes you want to go lay down your dollars, is an “offer” of securities. All offers and sales of securities must be registered under the Securities Act or covered by an available exemption. The exemption that is GOING to be available for crowdfunding is Section 4(6) of the Securities Act. It will be available for offers and sales made through a registered portal. THIS MEANS THAT UNTIL PORTALS ARE REGISTERED YOU CANNOT LEGALLY MAKE OFFERS OR SALES OF CROWDFUNDING SECURITIES. This means no “coming soon” or “here’s something you might be interested in when it’s legal to be interested in it.” Good lord, people, get a securities lawyer. I know plenty of unemployed ones if you need help. Because, as always, this isn’t legal advice.
The SEC and crypto: the answer is Rule 261
November 11, 2024
A few years ago, we spent a lot of time