Securities Law Commons^™

Power To The People: How The Sec Can Empower The Crowd, R. Kevin Saunders, Ii

Vanderbilt Journal of Entertainment & Technology Law

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 …