The Securities and Exchange Commission (SEC) is working to develop regulations governing crowdfunding, a system allowed under the JOBS Act where small businesses use Internet intermediaries to raise up to $1 million in capital, Dayton Business Journal reports. Expert witnesses recently provided testimony to the House Oversight and Government Reform Committee outlining what the SEC can do to make the system work. Witnesses suggested increasing “the threshold for audited financial statements from issuers” to $1 million from $500,000, focusing regulations “on intermediaries rather than entrepreneurs” to protect investors, and allowing “crowdfunding portals to be flexible on the fees they charge issuers,” the article said. For more, read the full story.
SEC regulations to determine the success of crowdfunding
