SEC Chairman Paul Atkins Proposes Crowdfunding and IPO Rule Changes
SEC Chairman Paul Atkins is revising crowdfunding regulations and IPO communication rules to lower compliance costs and expand retail investor access to private investments.
Securities and Exchange Commission Chairman Paul Atkins announced on Tuesday that the agency is developing changes to crowdfunding regulations to lower compliance costs and increase appeal for companies and investors. Speaking at the Small Business Capital Formation Advisory Committee meeting, Atkins directed staff to assess modifications to Regulation Crowdfunding to strengthen U.S. capital formation and expand retail investor access to private investments.
Atkins also intends to revise rules governing company communications during the initial public offering process. He specifically seeks clarity on gun jumping rules to prevent the inflation of securities values. These initiatives follow a proposal from September to modify the definition of an accredited investor.
In a related development, Crowdfund Capital Advisors has requested that the SEC raise the crowdfunding cap from $5 million to $20 million per offering. The firm argues that an increase would reduce the necessity for companies to conduct multiple funding rounds.
