Regulation of Crowdfunding on the Horizon?

[havocthecat]

Informational link for those interested, though this is full of legalese and I haven't had a chance to parse my way through more than the first couple of paragraphs yet:

SEC Proposes Crowdfunding Rules

I don't know that these would apply to small, individual crowdfunders, but thought it would be important to keep abreast of changes on the larger scale of crowdfunding as well.

Comments

Re: Well...

[pyraxis]

Agreed about the superfans. The point about equity crowdfunding was that if the rules only apply to the equity investment model, then most projects are still safe. Superfans can still fund the projects they like in the amounts they like, because they're getting a material return (products, swag, dinner with the company stars, etc).

I'm not out to get into a political argument about the inherent value of laws. Too busy working on my own projects. :)

Re: Well...

[ysabetwordsmith]

>> The point about equity crowdfunding was that if the rules only apply to the equity investment model, then most projects are still safe. <<

It's the precedents that make it dangerous. What can be applied to one version of crowdfunding might be extended to another. That's something to keep an eye on.

There is a very worrisome trend throughout the economy of requiring people to have money before they are allowed to make money. It's all about sawing the bottom rungs off the ladder. Droves of people are going into creative ventures because the dayjob quit them and they have no other means of making an income. Crowdfunding currently doesn't require getting anyone's permission or paying exorbitant sums for licensing and school. So if you know about that trend, you know to be protective of ways to make a living that don't yet require payment up front.