Key takeaways:

• The SEC and FINRA have published proposed rules relating to crowdfunding offerings, which create an exemption for private company security offerings to the general public.
• The proposed rules regulate (i) the types of issuers that may participate, (ii) the amount issuers can raise and investors can invest, (iii) issuer disclosure requirements, (iv) intermediary obligations, and (v) the ability to advertise in crowdfunding offerings.
• The proposed rules contemplate a new type of regulated intermediary for crowdfunding offerings, known as “funding portals,” that are subject to special obligations and limitations that effectively make them a “lighter version” of a broker-dealer.