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The SEC Sets Target Dates to Decide on Final Rule Making for JOBS Act Crowdfunding

As we approach the new year, many people are wondering what the rule makers in Congress are planning to do with the future pending Titles of the JOBS Act. Recently, the Securities and Exchange Commission (SEC) announced their plans to act on certain pieces of legislation by setting target dates to accomplish new rule making actions.

As a Regulation D Rule 506(c) company, Patch of Land is waiting in anticipation to see how the SEC will amend the JOBS Act. With the implementation of Titles III-VI looming in the balance, it's understandable why many crowdfunding companies are waiting on pins and needles trying to figure out how to plan ahead for the future.

Here are some of the final rules which are scheduled to be decided on this upcoming October 2015:

-- Final rules regarding the offer and sale of securities through crowdfunding

-- Final rules regarding amendments to Regulation D and Form D relating to Rule 506 offerings, including offerings in which issuers engage in general solicitation and general advertising under Rule 506(c)

-- Final rules regarding small and additional issues exemptions under Section 3(b) of the Securities Act of 1933 (referred to as Regulation A+)

See The Entire List

Originally it was thought that Title III of the JOBS Act will help create an avenue to democratize capital by stripping away the accreditation standards that kept many from investing their money into startups and other small businesses. However, it appears that the action to help democratize capital for mainstream Americans won't occur until some of the later Titles within the JOBS Act, which is precisely why so many people are starting to wonder when we will see a course of action being taken by the government on this important bill. In fact, rumors are circling around the idea that SEC is planning on scaling back and might actually increase the accreditation standards, which would work towards shrinking the amount of people in the crowd that are able to start building wealth by invest through crowdfunding portals.

Related Article: The JOBS Act Review: 2 Year Anniversary

What many crowdfunding companies, such as Patch of Land, would love to see is a forward thinking legal system and government which embraces these new concepts and innovations within our society. As the phenomenon of crowdfunding becomes more well-known throughout the world, it is becoming more clear than ever that the power of crowdfunding is strong enough to empower small businesses, as well as growing communities, and individuals alike.

It should be noted that October 2015 is the target date which was set by the SEC. There is no guarantee that they will make absolute decisions by then. However, we sincerely hope that the SEC takes action in the right direction and looks toward allowing the future of our society to start to take shape. Patch of Land feels like the power of crowdfunding is real and can be used to help in the betterment of our communities and neighborhoods in a multitude of ways. However, we'd love to hear your thoughts so please leave a comment and tell us what you think about these upcoming rule making actions?

*main photo provided by pixgood.com


If you want to learn more, take a look at some of the most commonly asked questions we receive about real estate crowdfunding on a daily basis and find out why so many people are crowdfunding real estate projects across the country with Patch of Land.
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