Originally published in Entrepreneur Magazine

By Douglas Fink

The rules have only been in place for a matter of months, but already Congress is moving to fine-tune the regulatory framework around the emerging field of equity crowdfunding that unaccredited investors are jumping into at a rapid pace.

In recent weeks, the House Financial Services Committee passed a pair of bills that will make it easier for companies to raise money via crowdfunding campaigns. One will remove some of the more onerous public reporting requirements for startups; the other will allow unaccredited investors to pool their investments in what are called Special Purposes Vehicles, creating de facto crowdfunding “funds.” Both bills enjoy wide bipartisan support and are expected to pass the full House by the end of the year.

But, what else is coming? Will the rules around equity crowdfunding change more in the next few months or years? At this point, with comment still to come from various regulators, no one can say for certain.

The real question, then, for entrepreneurs isn’t if changes are coming, but whether or not they should be waiting for them to become law before launching their own crowdfunding campaigns.

Read the full story at https://www.entrepreneur.com/article/280482

Douglas Fink is the CEO of Group Capital LLC.