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July 23, 2013 2:54 PM “Crowd” Must Wait To Engage in “Crowdfunding”

By Ed Kilgore

As you may know, in 2012 Congress authorized a move towards “crowdfunding”—investment solicitations to the general public—as a way to expand access to capital for small firms and start-ups. Just this month the SEC promulgated initial regulations aimed at partial implementation of the legislation.

But as the Milkin Institute’s Daniel Gorfine explains today in a web-exclusive piece at Ten Miles Square, by limiting public solicitations to wealthy “accredited investors,” the SEC may have done more harm than good for the ultimate goal of encouraging genuine crowdfunding—or this may be part of a strategy that could work.

Check it out.

Ed Kilgore is a contributing writer to the Washington Monthly. He is managing editor for The Democratic Strategist and a senior fellow at the Progressive Policy Institute. Find him on Twitter: @ed_kilgore.

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