Lexicon

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, an investor cannot make an investment in crowdfunding stock or bonds, and startups cannot legally make offers or sales of crowdfunding securities.
Other exemptions to registration include private placements under Section 4(2) of Reg D, which is mainly restricted to accredited investors; Rule 144A which is restricted to qualified institutional buyers, specific securities under Section 3, transactional exemptions under Section 4, international securities under Reg S, Private Investment in Public equity (a PIPE deal), etc.

The sale of newly issued debt or equity securities to a single buyer or limited number of buyers without a public offering.

The sale of securities to the public after registering with the Securities and Exchange Commission. The CROWDFUND Act makes an exception to the registration requirements for a public offering. Crowdfunding offerings to the public under the CROWDFUND Act do not have to be registered with the SEC, but must follow specific rules.

The process of filing a registration statement with the SEC, in order to disclose important information about the company so an investor can make an informed decision about whether or not to purchase securities. All securities offered in the U.S. must either be registered with the SEC or must qualify for an exemption from registration requirements.

Rule 504 exempts an issuer of securities from registration under the Securities Act for offerings of up to $1 million. The offer and sale must that take place exclusively in one or more states, and the offering is done in accordance with the securities laws of those states.

Rule 505 exempts an issuer of securities from registration under the Securities Act for offerings of up to $5 million. The exemption only applies if the securities are sold to accredited investors and up to 35 unaccredited investors. Investors are not allowed to sell their securities freely for at least one year.

Rule 506(b) exempts an issuer of securities from registration under the Securities Act for offerings of an unlimited size. To qualify for the exemption, the securities may only be offered and sold to accredited investors and up to 35 non-accredited investors who meet certain sophistication requirements (such as being officers or directors of the company selling securities). Under Rule 506(b), the issuer may not engage in general solicitation of the offer and must have a reasonable belief that the purchasers are accredited investors or sophisticated, non-accredited investors.

Rule 506(c) exempts an issuer of securities form registration under the Securities Act for offerings of an unlimited size. Like Rule 506(b), the securities may only be sold to accredited investors. Rule 506(c) differs from Rule 506(b) in that qualified issuers may utilize general solicitation to advertise the existence of the offer. Additionally, the issuer must take reasonable steps to verify that purchasers of securities are, in fact, accredited investors.