The Securities and Exchange Commission—as readers undoubtedly know—has a three-fold mission: to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. Critics often lament that pursuit of the third objective comes at the expense of the first.
The rise of SEC-sanctioned crowdfunding is a poster child for those concerns. Over time, however, reviews of those business practices have the potential to encourage a fresh look at investor protections. New approaches to that first prong of the SEC’s mission are already afoot.
