|We are excited to share the SEC’s press release which announced a new set of amendments to Regulation Crowdfunding as well as other exempt offerings. These new set of amendments would harmonize, simplify, and improve the exempt offering framework to promote capital formation and expand investment opportunities while preserving and enhancing important investor protections. Click here to view the summary of the proposed changes.
Here are some highlights:
For Regulation A:
- Raise the maximum offering amount from $50 million to $75 million
For Regulation Crowdfunding:
- Raise the maximum offering amount from $1.07 million to $5 million
- No investment limits for accredited investors
- Revising the calculation method for investment limits for non-accredited investors to allow them to rely on the greater of their annual income or net worth when calculating the limit on how much they can invest instead of the constricting “lesser of” rules.
- Allow SPVs for Regulation CF
- Allow Testing the Waters for Regulation CF
For Rule 504 of Regulation D:
- Raise the maximum offering amount from $5 million to $10 million.
When do these new rules go into effect?
These new rules do not immedreferiately go into effect. They will be effective 60 days after publication in the Federal Register.
These proposals are a HUGE game-changer for the crowdfunding industry and for private capital formation, and we couldn’t be more excited!