Should non-millionaires be able to invest small amounts, like up to $100 or $1000, in small, local businesses or other ventures that they believe in, without the ventures having to spend tens of thousands (or more) on state or federal securities compliance? I believe so, provided that the offerings can be seen and discussed openly, and have other requirements and limitations to prevent abuse.
I think this legalization of crowdfunded securities would create meaningful jobs and enable grassroots innovation on an enormous scale. Maybe I'm overestimating, but I see it as a regulatory change comparable in importance to the revision of NSF's Acceptable Use Policy, which first allowed commercial traffic on the Internet. That early 1990's policy democratized the flow of information the way a well-implemented crowdfunding exemption would democratize the allocation of human effort.
Largely under the radar, crowdfunding exemption proposals have progressed to a point now where the first bill, H.R.2930, overwhelmingly passed the House, with White House support, and is now under review by the Senate Banking Committee, along with two competing bills, S.1719 and S.1970. Other countries are looking to the U.S. as an example on this issue. Read the rest
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