Law Prof Urges “Keep it Light, Chairman White”

Security and Exchange Commission“Keep it light, Chaiman White,” University of Colorado Law Associate Professor Andrew Schwartz urges the SEC on formulating new regulations for equity crowdfunding. In a law review article entitled “Keep It Light, Chairman White: SEC Rule making Under the Crowdfund Act” just published in the Vanderbilt Law Review, Professor Schwartz says the SEC should keep the rules and regulations governing securities crowdfunding “as light and simple as possible.”

Professor Schwartz’s primary concern is that over-regulation would make crowdfunding costly and defeat the very purpose Congress enabled crowdfunding under the Jumpstart Our Business Securities Act, which is to help small businesses raise new capital and create new jobs.
Professor Schwartz pointed out that the JOBS Act already incorporates strong safeguards to protect investors and minimize fraud. The safeguards include the following:
The JOBS Act establishes a maximum aggregate amount of crowdfund securities an investor may purchase within a year, beginning with a cap of of the greater of $2,000 or 5% of the investor’s annual income or net worth. In other words, an investor cannot “bet the farm” by making crowdfund investments.
Issuers may not directly sell securities.
The Act requires intermediaries to educate crowdfund investors about the risk of investing.
The Act requires intermediaries or brokers to conduct a background check and securities enforcement regulatory history check.
The entire law review article can be viewed here. “If the SEC gives crowdfunding some breathing room, it stands a good chance of bringing new opportunities and economic growth to America,” Professor Schwartz concluded.
Article by A. Brian Dengler. Mr. Dengler is an information technology attorney and instructor at Kent State University.
Source: CFIRA | Andrew Schwartz


U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...] BaltimoreArbit took to crowdfunding to seek out BaltimoreThe Baltimore-based social polling company is seeking to raise a maximum of $425,000 through equity crowdfunding, a funding instrument that was first officially made available last year with re [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

ForbesMoney Makes Small Businesses Go Round: Ensuring Access For AllForbesIn 2008, a new form of financing — rewards-based crowdfunding — premiered. With money raised on crowdfunding platforms like Indiegogo and Kickstarter, startups and companies with a new product idea connect direc [...]

Manchester Evening NewsManchester video company Juke Media supports crowdfunding campaignsManchester Evening NewsNuuk Digital have raised over £12m creating and designing crowdfunding campaigns in just 18 months, including campaigns for Smacircle – an e-bike that fits in your backpack [...]

EE TimesEngineer Looks to Crowdfunding to Stoke Kids' Interest in ElectronicsEE TimesProtoBricks launched on the Indiegogo crowdfunding platform Tuesday (Aug. 15). The goal is to raise $100,000 within the next 40 days to bring the product to the shipping stage, expected to begin [...]

Indiana pioneers crowdfunding community projectsWTHRA downtown Greensburg mural made possible by community donations,, the Indiana Housing and Community Development Authority and other local organizations, as seen on Aug. 3, 2017. (Main Street Greensburg Photo via ... [...]

CNETKickstarter alternatives: Choosing a crowdfunding platform - CNETCNETCNET@Work: Before launching a crowdfunding campaign, it's worth exploring the differences between Kickstarter and its competitors.and more » [...]

Global Crowdfunding Market 2017-2021 - Market to Decline at a CAGR of 16.96% - Research and MarketsBusiness Wire (press release)Global Crowdfunding Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |