Blog

Unlike the Environmental Protection Agency, the Securities and Exchange Commission lacks a paramilitary force. But one recent article says it’s nonetheless preparing for war. The SEC’s enemy is initial coin offerings (ICOs), a capital raising tool popular with “fintech” companies immersed in blockchain. In a 10,000-word tome, consultant John Stark, a 20-year veteran of the...
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Equity Crowdfunding and the JOBS Act President Obama signed the Jumpstart Our Business Startups (JOBS) Act in 2012 after receiving overwhelming bipartisan support. The equity crowdfunding law helps startups and smaller businesses raise capital through innovative rules and regulatory rollback. The SEC began implementing the law in 2013, finalizing the last title in 2016. This...
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Always hip with the times, the SEC set loose its own Hurricane, Icarus (ICO for short) this summer. Instead of dowsing everyone with rain, Icarus threatens to burn those who get too close. Icarus has panicked refugees as they scurry for shelter from the storm. Although forecasters had predicted Icarus for months, the blockchain community...
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What is Equity Crowdfunding? The SEC finalized equity crowdfunding (Reg CF) regulations in May 2016. This innovative new law allows small businesses, entrepreneurs, and startups to raise capital through equity or debt sales to the “crowd” just as a public company could. Reg CF Basics: Any business can raise up to $1.07M over a 12-month...
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While other entertainment sectors like music and cable television have seen paradigmatic disruptions in the past 15 years, Hollywood has thus far proven immune. That’s about to change. Equity crowdfunding and blockchain distribution may be about to turn Tinseltown upside down. Currently the movie business operates in an esoteric netherworld, full of middlemen, secret contracts,...
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The SEC recently warned equity crowdfunding investors about a popular Reg CF security called a ‘SAFE’—Simple Agreement for Future Equity. The Commission is concerned investors purchasing SAFEs may be unaware of their risks and should be cautious of this “exotic” Silicon Valley security. Although SAFEs have drawbacks for early investors, if done with favorable terms...
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Few issues in Washington get prodigious bipartisan support, but the 2012 JOBS Act’s equity crowdfunding title was one. After a long delay, Reg CF finally went live in last May. But a year on some are asking, ‘Where is the Crowd?’ The crowdfunding total is approaching $40 million but it should be billions. A recalcitrant...
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Equity crowdfunding celebrated its first birthday last week. The innovative securities law democratizes business capitalization and allows anyone to potentially make a bundle on a young company. Although Congress must tweak the law to realize its potential the future looks bright. The naysayers fretted equity crowdfunding wouldn’t work. They said scandal and fraud would taint...
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Most Americans would probably rank liberty and equality as our most important political values. These competing principles appear in our founding documents and have defined American politics since the early twentieth century. But below the surface, other values clash, illuminated by two centuries of Supreme Court jurisprudence. A multi-million-dollar industry exists to convince (and force)...
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