SEC Unveils Proposed Crowdfunding Rule In Unanimous Vote

Law360, New York (October 23, 2013, 1:03 PM EDT) -- The U.S. Securities and Exchange Commission voted Wednesday to propose sweeping new rules that will allow startup companies to raise money from investors through online “crowdfunding” portals, accomplishing a major policy milestone under the Jumpstart Our Business Startups Act.

The five SEC Commissioners voted unanimously to approve the proposal, which was mandated by the JOBS Act. The legislation, passed last year, is aimed at easing the capital-raising process for small, private companies.

Through crowdfunding, companies may solicit up to $1 million annually through online portals or...
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