The Securities and Exchange Commission, which governs investing and trading stocks, is proposing an update.
The SEC is proposing to amend that rule, which will allow sites like Fundable to publicly offer and solicit the sale of actual shares in companies in exchange for investments. That’s in recognition of President Obama’s JOBS act of 2011, which was intended to open up investment opportunities for startups.
The announcement is a welcome one for crowdfunders such as Fundable:
“We are confident that this is a promising step in the right direction, and look forward to their recommendation becoming a reality after the allocated thirty days of public comments,” said Fundable’s chief executive Wil Schroter.