The SEC is in the process of formalizing rules to allow “general solicitation”, or the ability to advertise the sale of private securities, to both accredited and non-accredited investors. The implementation of these rules is meant to fully enable the crowdfunding provision of the federal JOBS Act that was signed into law in 2012. Some who have been involved in the process believe that crowdfunding portals will be able to operate under these rules in a matter of months while many others believe the time horizon is substantially longer.
Image: Alan McGlade
