News & Analysis as of

Crowdfunding Enforcement Actions Securities and Exchange Commission (SEC)

Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including,... more +
Crowdfunding is a method for raising capital whereby many individuals network and pool their funds, usually via the internet or social media. Crowdfunding methods are used in a variety of circumstances including, but not limited to, supporting charitable organizations, disaster relief, product development, artistic projects, and financing start-up companies. The passage of the JOBS Act of 2012 sought to broaden the use of crowdfunding in developing private capital for start-up companies by relaxing certain SEC investor registration requirements. less -
Davis Wright Tremaine LLP

New Administration Outlook: SEC Crypto Task Force Leader Outlines Regulatory "Journey"

On February 4, 2025, Commissioner Hester Peirce—head of the SEC's new Crypto Task Force—authored a Statement, posted on the SEC's website, titled "The Journey Begins." Her Statement analogizes from early childhood road trips...more

Venable LLP

Finders and Unregistered Broker-Dealers

Venable LLP on

The issue of when a person may be considered a “broker” or “dealer” and subject to registration as such under the federal securities laws, as distinguished from so-called finders (and therefore not subject to the panoply of...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update (22-01)

The Nutter Securities Enforcement Update is a periodic summary of noteworthy recent securities enforcement activity, settlements, decisions, and charges. ...more

Goodwin

Delaware Court of Chancery Finds that Director’s Email on Outside Email System Remains Confidential

Goodwin on

Delaware Court of Chancery Finds that Director’s Email on Outside Email System Remains Confidential; Delaware Supreme Court Overrules Longstanding Precedent Regarding Derivative Versus Direct Standing; SEC Files Crowdfunding...more

Barnea Jaffa Lande & Co.

The Law of Facebook Is Not the Law of Small Companies

In June, two seemingly unrelated events took place: during the first week of June the SEC filed suit in federal court against the company Kik Interactive, which raised about 100 million dollars in the summer of 2017 through...more

Stinson - Corporate & Securities Law Blog

Crowdfunders and Crowdfunding Service Providers Beware

If you are planning to move into the crowdfunding consulting or platform area make sure you are familiar with the SEC broker-dealer rules, which require registration before performing broker-dealer services. If you plan on...more

Goodwin

Financial Services Weekly News - November 2015 #3

Goodwin on

Regulatory Developments - MSRB Publishes Compliance Advisory for Municipal Advisors: On Nov. 12 the Municipal Securities Rulemaking Board (MSRB) published its first municipal advisor compliance advisory, developed...more

Katten Muchin Rosenman LLP

Bridging the Week - November 2015

SEC to Permit Capital Raising Through Crowdfunding: The Securities and Exchange Commission finalized rules that will permit eligible companies to raise money through Internet offerings of their securities—a practice known as...more

Goodwin

Financial Services Weekly News - October 2015 #4

Goodwin on

Regulatory Developments - SEC to Vote on Final Title III Crowdfunding Rules Oct. 30: The SEC has announced that it will vote on whether to adopt rules and forms related to the offer and sale of securities through...more

Goodwin

Financial Services Weekly News - October 2015 #2

Goodwin on

Regulatory Developments: FINRA Proposes Rules for Funding Portals - On Oct. 9 FINRA filed with the SEC a proposed rule change to adopt Funding Portal Rules 100 (general standards), 110 (funding portal application),...more

Parker Poe Adams & Bernstein LLP

What is Crowdfunding Anyway?

Rarely has a capital markets concept been more ambiguous, and potentially more confusing, than crowdfunding. It seems that everyone has his or her own definition, which sometimes varies depending on the circumstances. ...more

Dorsey & Whitney LLP

Crowd-funding Site Named In SEC Proceeding

Dorsey & Whitney LLP on

Raising capital through crowd-funding is one of the key provisions of the JOBS Act. It is supposed to facilitate raising small amounts of capital for start-up operations. An off-shore crowd-funding site that sold unregistered...more

Holland & Knight LLP

SEC's Division of Trading and Markets Grants Relief from Broker-Dealer Registration for Online Platform that Permits Investment in...

Holland & Knight LLP on

On March 26, 2013, the SEC's Division of Trading and Markets issued a no-action letter indicating that it would not recommend enforcement action under Section 15(a)(1) of the Exchange Act if a venture capital fund adviser and...more

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