SEC Clarifies That Crowdfunding Remains Unlawful Until It Adopts Rules Implementing New JOBS Act Exemption | Practical Law

SEC Clarifies That Crowdfunding Remains Unlawful Until It Adopts Rules Implementing New JOBS Act Exemption | Practical Law

The SEC posted a notice reminding issuers that it has not yet implemented the JOBS Act's crowdfunding exemption.

SEC Clarifies That Crowdfunding Remains Unlawful Until It Adopts Rules Implementing New JOBS Act Exemption

by PLC Corporate & Securities
Published on 24 Apr 2012 • USA (National/Federal)
The SEC posted a notice reminding issuers that it has not yet implemented the JOBS Act's crowdfunding exemption.
On April 23, 2012, the SEC posted a notice reminding issuers that although the JOBS Act requires the SEC to adopt rules allowing crowdfunding under certain circumstances, it has not yet implemented this exemption. Until it does so, any offers or sales of securities purporting to rely on the crowdfunding exemption would be unlawful under the federal securities laws.
For more information on the JOBS Act's new crowdfunding exemption, see Practice Note, JOBS Act: Crowdfunding Summary.