The SELC's SEC petition looks to make crowdfunded public securities offerings legal.
We request the Securities and Exchange Commission adopt a rule exempting
individual purchases of securities totaling $100 or less from registration requirements and
from all other requirements other than those described below. It is our belief that
exemption of these small investments is necessary to promote sustainable, local
enterprise and that the Commission can grant the exemption while preserving its aims of
protecting investors while furthering the public interest.
We propose the following limitations on the proposed exemption. The limitations
serve to protect investors-who we anticipate will often be members of the population
inexperienced in complicated financial transactions-while still allowing this type of
small-scale investment with minimal cost.
1) No purchaser may invest more than $100.
2) The aggregate offering is limited to $100,000 maximum.
3) Offerors must be individuals. Offerors may not be entities, and must be United
States Citizens or legal residents
4) No offeror may have more than one offering open at any time.
5) All offering materials and communications must contain a disclaimer clearly
stating the possibility of total loss of the investment, and the necessity of careful
evaluation of each offeror's trustworthiness by the individual purchaser.
You can view the original petition
here.
