The Securities and Exchange Commission (SEC) is set to regulate crowdfunding activities in the country to protect the investing public from any abuses in fundraising innovations typically designed for startup companies.
Crowdfunding refers to a method of fundraising by tapping a large number of individuals, usually through an online platform. This method allows investors to obtain access to investment opportunities, while also enabling startups and small- and medium-sized enterprises (SMEs) to access new sources of funding.
