The investment crowdfunding landscape can be confusing.
And one of the main reasons it's so confusing is because many of the key terms and labels were created by lawyers and legislators, who aren't really known for their ability to keep things simple.
That means navigating and deciphering the nearly inscrutable alphabet soup of the relevant crowdfunding regulations, rules, laws, and requirements is about as much fun as …. well, navigating and deciphering an alphabet soup of laws, rules, and regulations.
So before trying to parse the fine print of crowdfunding regulations, here’s some overall context that should help.
In 2012, the Jumpstart Our Business Startups Act (get it? “JOBS”? Isn’t that clever…) was signed into law, and it did two important things:
- Amended the Securities Act of 1933 (that's the set of laws passed after the 1929 stock market crash)
- Required the SEC to update several of its Regulations
It’s helpful to think about crowdfunding regulations...more