Finkelstein Thompson LLP Comments on SEC Proposed Crowdfunding Rule E-mail
February 05, 2014

The U.S. Securities and Exchange Commission (“SEC”) recently proposed regulations to implement Title III of the Jumpstart Our Business Startups (“JOBS”) Act and Section 4(a)(6) to the Securities Act of 1933 in which Congress created an exemption to securities registration requirements that would equity-based crowdfunding. Crowdfunding is the collective effort of individuals who pool their money to support efforts initiated by others. While crowdfunding is not new, crowdfunding in the past has not permitted companies to carry out crowdfunding by offering equity interest in their companies. These laws will soon create a new industry and revenue opportunities for businesses.


As a firm with more than four decades of experience in securities law, Finkelstein Thompson LLP (“FT”) is actively engaged in the development of this new industry and submitted comments in response to the SEC’s proposed rules. FT’s comments focused on changes the agency can make to its rules in order to balance the needs of allowing appropriate access to this expanding market while adequately protecting investors from potential fraud. FT provides counsel on compliance requirements to small businesses seeking to raise capital using the crowdfunding regulations and platforms seeking to gain issuers and investors under these rules.


If you are a potential issuer or intermediary platform owner interested in discussing crowdfunding compliance matters, please contact Finkelstein Thompson’s Washington, DC offices at (202) 337-8000 or by email at This email address is being protected from spam bots, you need Javascript enabled to view it


To read FT’s full comment to the SEC’s proposed crowdfunding rule, click here.