2,536 crowdsourcing and crowdfunding sites
Tuesday, the U.S. House of Representatives passed a bill legalizing crowdfunded investments on to President Obama for his signature and the past few days the nation and world have continued to react.
“There will be a significant number of equity-based crowdfunding platforms in the next years -- probably hundreds and hundreds,” he told Entrepreneur's Catherine Clifford.
For a little bit more balanced conversation, it's also worth checking out this debate between Barnett and Thomas Murphy, a partner at McDermott Will & Emery LLP.
Other supporters heaping praise on the bill include Christopher Derrington, founder of Rural America Onshore Outsourcing, in the Huffington Post, and of course, Sherwood Niess and Jason Best of the Startup Exemption, writing in Inc. The initial crafters of the crowdfunding framework lay out how it will help fill the gap left in the capital markets by the financial crisis and recession that followed while also addressing concerns of fraud. They also took a look forward:
Now that the JOBS Act has passed, we are moving to the next phase of development on a two-track strategy. First we'll help build a self-regulating organization, like Nasdaq, to be the voice of the Crowdfunding industry and work with the SEC to regulate funding platforms and keep investors educated.
Second, we'll work with the SEC on their rule-making progress. It is vitally important that entrepreneurs and small business people stay tuned in. The SEC will begin with 90 days of rulemaking, and then open their draft rules for 90 days of comments. These comments are very important to the process. Entrepeneurs have the most to gain (and lose) so we must continue to fight for rules that provide fair balance between the needs of investors and entrepreneurs.