Bloomberg News, September 6, 2014: Texas is taking steps to become a market leader in funding local investment. The Texas State Securities Board published proposed rules for equity crowdfunding earlier this year, and is expected to vote on them at its next meeting. If passed, the regulations would allow Texas companies to raise up to $1 million a year from virtually any Texan, not just those with enough wealth to qualify as accredited investors.
When Congress passed the Jumpstart Our Business Startups Act in 2012, it directed federal securities regulators to establish rules for equity crowdfunding by January 2013.
More than 18 months past that deadline, the Securities and Exchange Commission has yet to adopt the regulations ... So Texas and a dozen other states have taken matters into their own hands, crafting rules that will allow in-state companies to solicit and raise money from a much broader cohort of in-state investors.
Unlike other states which need to rely on legislative action, and occasionally overcome indifferent regulators or disinterested administrators, Texas has a securities board empowered to act quickly. By doing so, Texas stands to build an ecosystem that is stronger and more transparent than other states.
We look forward to seeing this ecosystem develop.
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