SEC introduces crowdfunding compliance and disclosure interpretations

The Securities and Exchange Commission (SEC) has released new Compliance and Disclosure Interpretations (CDIs)1 regarding the intrastate offering exemption in Section 3(a)(11) of the Securities Act of 1933

Today, crowdfunding — using startups like Kickstarter to source funds for virtually any project — is moving to equity investments under the radar of U.S. regulators. These new compliance and disclosure interpretations (CDIs) will be important to the interpretation of state crowdfunding rules, including the Wisconsin crowdfunding law that was enacted late last year.

In November, the Wisconsin legislature passed legislation enabling businesses to raise money through equity crowdfunding and is expected to become effective on June 1, according to the National Law Review. A key aspect of the Wisconsin crowdfunding law is that the issuer and investors must be resident of Wisconsin.

Contributing Author

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Amanda Ciccatelli

Amanda G. Ciccatelli is a Contributing Writer for InsideCounsel, where she covers the patent litigation space. Amanda earned a B.A. in Communications and Journalism from...

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