Letter to SEC Chairman Clayton: Crowdfunding Leaders Make the Case for Increasing Crowdfunding Cap to $20 Million

By SBE Council at 19 July, 2018, 3:11 pm

In a July 19, 2018 letter to Securities and Exchange Commission (SEC) Chairman Jay Clayton, the largest Regulation Crowdfunding platforms and industry leaders wrote that raising the cap on how much can be raised via Regulation Crowdfunding is a needed and common sense measure that will serve to benefit small businesses, America’s workforce and the U.S. economy, as providing promising firms with the capital they need to scale and create valuable jobs is important to American dynamism and innovation.  As noted by the signers, of which SBE Council president & CEO Karen Kerrigan is one:

“Given the positive early results since 2016 for both entrepreneurs and investors, we believe the time has come to raise the maximum amount an issuer can raise via Regulation Crowdfunding (Reg CF) from US$1M to US$20M. Please keep in mind that during the 2 years of this new exemption there has been no fraud and very limited regulatory issues.”

The letter reviews the performance of Regulation Crowdfunding to date, as well as the rationale for raising the cap to $20 million.

Read the letter in its entirety here.