Jenner & Block

Client Alert: The Wisdom of Crowdfunding? The SEC’s New Rules

In this article, Partners Jerry J. Burgdoerfer, William L. Tolbert, Jr., and Elaine Wolff, and Associate Matthew Carter examine the SEC’s proposed crowdfunding rules, promulgated under the JOBS Act. Focusing on the Act’s issuer and investor caps, and on the proposed disclosure and reporting requirements for issuers and intermediaries, they assess the likely impact of this new registration exemption. They conclude that relative to the amounts of capital raised, the compliance costs for equity crowdfunding may be substantial.