SEC Amends Crowdfunding Conditions for Crypto Startups
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Nov. 3, 2020
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The US Securities and Exchange Commission (SEC) has just raised the limit on funds that can be attracted through regulated crowdfunding campaigns from $1.07M to $5M.

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Crypto startups are expected to have more opportunities to raise funds.

Regulated crowdfunding allows startups to make securities offerings without having to register with the SEC. To this end, it is sufficient to limit the amount that non-accredited investors can invest. According to the SEC regulations, anyone can participate in this type of campaign.

Thanks to the new amendments, the restrictions will no longer apply to accredited investors, and the amount available to non-accredited investors will be calculated based on their annual income, which will increase the limit by 12 months.

The SEC chairman Jay Clayton noted:

"For many small and medium-sized business, our exempt offering framework is the only viable channel for raising capital."

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