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SEC urged to boost crowdfunding cap

Joe Mont | August 7, 2018

Crowdfunding evangelists are asking the Securities and Exchange Commission to consider raising the investment cap under Regulation Crowdfunding from $1 million to $20 million.

The letter follows an online conversation between SEC Chairman Jay Clayton and FINRA President and CEO Robert Cook. “I continue to worry that retail investors do not have access to as broad a slice of our capital markets as I would like them to have,” Clayton said. “You have private capital and public capital. Retail investors can really only participate in the public capital, and to the extent private capital has become so robust, you’ve shrunk opportunities.”

“That bothers me a bit,” he added. “If that trend continues, a much more select group is participating in the growth of the economy.”

The letter was signed by: Sherwood Neiss of Crowdfund Capital Advisors; Doug Ellenoff of Ellenoff Grossman & Schole; Youngro Lee, CEO of NextSeed; Tyler Gray, COO of Microventures; James Dowd,...

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