Comments on the SEC's Proposed Rules for Regulation Crowdfunding

Title III of the JOBS Act added Section 4(6) to the Securities Act to provide an exemption fromthe registration provisions of the Securities Act for crowdfunding transactions involving theoffering of securities, and added Section 4A to the Securities Act to set forth the requirements for issuers and intermediaries, liability provisions, and certain other matters relating tocrowdfunding. In addition, Title III amended various provisions of the Exchange Act inconnection with the...
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Title III of the JOBS Act added Section 4(6) to the Securities Act to provide an exemption fromthe registration provisions of the Securities Act for crowdfunding transactions involving theoffering of securities, and added Section 4A to the Securities Act to set forth the requirements for issuers and intermediaries, liability provisions, and certain other matters relating tocrowdfunding. In addition, Title III amended various provisions of the Exchange Act inconnection with the crowdfunding provisions. The JOBS Act requires the Commission to adopt a number of rules implementing crowdfunding, including the following:1. Rules to carry out Section 4(6) and Section 4A of the Securities Act, pursuant to Section302(c) of the JOBS Act;2. Rules to provide for disqualifications of issuers, brokers or funding portals pursuant toSection 302(d) of the JOBS Act;3. Rules to exempt, conditionally or unconditionally, the requirement for a registeredfunding portal to register as a broker or dealer under Section 15(a)(1) of the ExchangeAct, pursuant to Section 304(a) of the JOBS Act; andU.S. Securities and Exchange Commission;4. Rules to exempt, conditionally or unconditionally, securities acquired in crowdfundingtransactions from the scope of Section 12(g) of the Exchange Act, pursuant to Section303 (b) of the JOBS Act.In addition, Title III authorizes the Commission to adopt such additional rules as may beappropriate to implement the crowdfunding provisions under Title III.This handbook attempts to summarize public comments on the SEC's proposed rules on Regulation Crowdfunding with the greatest reliance on comments submitted by the .Federal Regulation of Securities Committee of the Business Law Section of the American Bar Association.