22 Oct Crowdfunding Rule Proposals Coming Tomorrow

The SEC’s website makes it official. Tomorrow at 10am Eastern time the SEC will: “consider whether to propose rules and forms related to the offer and sale of securities through crowdfunding pursuant to Section 4(a)(6) of the Securities Act of 1933, as mandated by Title III of the Jumpstart Our Business Startups Act.”

This is by far the most complex rulemaking required of the Commission by the JOBS Act. If you want to listen in to the live webcast, go to www.sec.gov. Usually what happens in these hearings is the staff briefly summarizes the key elements of the proposal, then the Commissioners provide prepared remarks and thoughts, then they vote, almost always to approve that the proposals be submitted for public comment. Then the actual proposal itself is released to the public. Sometimes that happens immediately, other times it takes a few days.

This will certainly be an important day for the small business and smallcap communities. Get ready for what probably will be a very long and complicated set of proposals dealing with a variety of issues required by the JOBS Act. But in the end it will usher in an era that some feel will allow the average person the chance to help early stage companies in a way that was much more difficult in the past.