Over two years after proposing rules, the Securities and Exchange Commission (SEC) recently adopted rules to implement Title III of the Jumpstart Our Business Startups Act (JOBS Act) and legalize the offer and sale of securities through crowdfunding (i.e., an evolving form of Internet-based fundraising through small investments from a large number of individuals). The rules, titled Regulation Crowdfunding, will be effective May 16, 2016, although certain forms enabling funding portals to register with the SEC will take effect January 29, 2016. The SEC’s adopting release for these rules can be found here.
