- About
- Journal Archives
- Symposium
- Blog
- News
- Publish
- Resources
Power to the People: How the SEC Can Empower the Crowd
R. Kevin Saunders II · 16 Vand. J. Ent. & Tech. 945
Abstract
Crowdfunding emerged as a heralded capital-formation mechanism at a time when capital markets desperately need it, but is it actually viable? Following passage of the JOBS Act and issuance of proposed rules by the SEC, equity crowdfunding will soon become reality. When signing the JOBS Act, President Obama touted it as a means “to increase American job creation and economic growth,” but that will only hold true for Title III, Crowdfunding, if the SEC creates an attractive market for high-quality projects. The SEC’s proposed rules impose a heavy disclosure burden relative to a low maximum offering amount, offering a poor value proposition to aspiring entrepreneurs. Consequently, the proposed crowdfunding market is more likely to attract low quality projects that cannot find funding elsewhere.
This Note contends that reducing disclosure requirements, allowing portals greater discretion to screen projects, and facilitating active crowd participation in selecting high-quality investments would be more consistent with the aims of both the JOBS Act, in particular, and securities regulation, in general. This Note recommends the Commission initially adopt a light regulatory approach, let the market regulate itself where practicable, and impose harsher regulation only where necessary.
Recent Blog Posts
- Will the Angels Face Liability for the Death of Tyler Skaggs?
- A Different Kind of Piracy: North Carolina Claims Immunity from Copyright Infringement in Dispute over Queen Anne’s Revenge
- The Homegrown Player Rules in the MLS
- Why Data Portability Promotes Competition
- A Hot Rod or Just a Fraud?
- The Death of § 2(a) and the Ascent of Native American Trademarks
Blog Archives
Tags
advertising antitrust Apple books career celebrities contracts copyright copyright infringement courts creative content criminal law entertainment Facebook FCC film/television financial First Amendment games Google government intellectual property internet JETLaw journalism lawsuits legislation media medicine Monday Morning JETLawg music NFL patents privacy progress publicity rights radio social networking sports Supreme Court of the United States (SCOTUS) technology telecommunications trademarks Twitter U.S. ConstitutionBlogroll
US Government Websites