Law360, New York (January 26, 2016, 4:02 PM EST) -- The U.S. Securities and Exchange Commission has approved crowdfunding portal rules proposed by the Financial Industry Regulatory Authority, a required step toward making online crowdfunding viable before broader SEC rules go into effect in May, according to a recent regulatory notice.FINRA, a self-regulatory organization, proposed the rules in October in connection with the Jumpstart Our Business Startups Act, a law passed by Congress in 2012 to provide smaller companies more capital-raising options, including online crowdfunding. Companies that use online portals to raise equity must have their platforms approved by FINRA and registered with the SEC.The SEC said it received... In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. TRY LAW360 FREE FOR SEVEN DAYS
The US regulator, the SEC, has approved new crowdfunding rules, which were proposed by the Financial Industry Regulatory Authority (FINRA); the regulator said that the new rules will make online crowdfunding viable. From May, it will be easier for companies to raise funds through online crowdfunding platforms.