What Atkins asked staff to do
Atkins told staff to examine which parts of Regulation Crowdfunding could be changed to lower compliance costs and make the rules more appealing. He said this at the Small Business Capital Formation Advisory Committee meeting on Tuesday and used these exact words: "I have asked Commission staff to evaluate which aspects of Regulation Crowdfunding can be amended to reduce compliance burdens and improve the rules' attractiveness for issuers and investors."
Crowdfunding numbers and a big ask
As of June 30, there have been about 9,850 crowdfunding offerings since the rules became effective in 2016. An advisory firm, Crowdfund Capital Advisors, asked the SEC earlier this year to raise the per-offering cap from $5 million to $20 million, saying the $5 million limit forces companies seeking larger sums to run multiple rounds.
IPO communications and gun-jumping
At the same meeting Atkins reiterated plans to change how companies talk to prospective investors when pursuing an IPO. He said he wants to clarify gun-jumping provisions, which limit marketing and other communications during three stages of the IPO process because the SEC put them in place to prevent firms from overstating value and to ensure equal information for investors. Atkins said the current rules are hard for issuers to interpret and can discourage communication, a concern he first raised in May.
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What this could mean for your portfolio
Easier crowdfunding rules or clearer IPO communication could change how private companies raise money and how much information reaches retail investors, which matters if you follow private offerings or IPOs. Keep an eye on the SEC's reviews and any formal rule changes.
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