Editor's Note: This post comes to us from David Drake, a founding board member of Crowdfund Intermediary Regulatory Advocates or CfIRA, and a partner at LDJ Capital. Drake discusses the Regulation D, Rule 506 exemption proposal that was recently introduced by the SEC. (Also see Drake's previous posts, which deal with education, fraud protection, transparency and creating a whistleblower program, advertising and investment advice, consumer protection, due diligence, "held of record" matters, and general solicitation regulation).

Imagine seeing Donald Trump on TV saying, “Invest in my new casino – give me $10,000 and you get 10,000 stock shares!” This is the promise of the new Securities & Exchanges Commission (SEC) Regulation D, Rule 506 exemption proposal close to being introduced, and this is how it affects you.

SEC Chairman Mary Schapiro supported the proposal to remove the solicitation ban of Regulation D, exemption 506 last Wednesday Aug. 29 in Washingotn DC.

"I recognize that there are very real concerns about the potential impact of lifting the ban on general solicitation," Chairman Schapiro said. "While I'm prepared to bring forward today's narrow proposal, I look forward to the continued examination of this critically important market."

The SEC has not allowed general solicitation of private offerings since its creation in 1933. The Jumpstart Our Business Startup Act (JOBS Act), which was signed into law April 5, 2012 by President Obama, outlines that the ban on solicitation under this fundraising exemption is to be lifted. The proposal the SEC submitted, albeit late from it’s 90-day deadline expiring July 4, now has 30 days for public commenting. At that point, without major changes, it is converted into applicable law.

As it is proposed, and while the changes are minor, they are yet gargantuan in financial media terms. Trump will be able to go on TV and offer stock for cash in his next casino. Something that has never been allowed for a private offerings. The caveat is that the investor must be accredited. This means having $200,000 in annual salary the last two years and and an expected income of that amount for the following year. The amount is $300,000 for married couples of $1 million in net worth, excluding the couple’s personal home but including the family’s vacation home. We won’t discuss the intricacies of what this means to SEC and FINRA.

However, it means that you can now solicit via TV, conferences or online to raise cash for stock. You can now market online to raise money from people willing to invest. You would not be limited to having broker dealers finding the investors, but you could now mass market your business and reach a larger investor pool for less and quicker.

It is a paradigm shift the world has never seen. TV and internet advertising will explode from fundraising entities like we have never seen. It is an upheaval and an opportunity of gargantuan media opportunities. Corporate strategy will be in the center of these services. European firms will flock to the US market faster than before, and we will see a rush and spur of amazing magnitude. This is the biggest impact of the JOBS Act we have ever expected.

Will you see Trump on TV soon prompting his washing detergent or casino stock for cash? You bet you will.