4 Things To Know As Equity Crowdfunding Rules Take Effect

Eliza Fromberg was quoted in an article, "4 Things To Know As Equity Crowdfunding Rules Take Effect," in Law360. In the article, Fromberg discusses the Securities and Exchange Commission's Regulation Crowdfunding, which goes effective today. Regulation Crowdfunding permits mom-and-pop businesses to sell limited amounts of securities to unaccredited investors. "At least, in the beginning, the SEC is taking a cautious approach and making this more highly regulated than a lot of people would like," Fromberg said. "I think the hope is that after some time when people get more comfortable with crowdfunding, perhaps some of these rules could be relaxed a bit. Perhaps the $1 million limit could be increased. Starting from a more cautious position and incrementally expanding crowdfunding might be the way to go."