The Securities and Exchange Commission (SEC) made temporary changes to its Crowdfunding Regulations, making it easier for startups and Blockchain companies trying to launch themselves through platforms like Indiegogo to raise funds.
The adjustments mean that companies seeking to raise money through Crowdfunding will not need documents that may be difficult to obtain as a result of the coronavirus quarantine, including financial statements.
However, companies must submit all the necessary documentation before obtaining commitments from investors.
The temporary guidelines were recommended by the SEC’s Small Business Capital Formation Advisory Committee.
The relief measure was approved on May 4 in a 4-0 SEC vote and is valid until August 31.
SEC Changes Collective Financing Rules Amid COVID-19
Instead of waiting for a declaration of public offering for at least 21 days, applicants can start sales as soon as they receive commitments from investors.
The new rules also allow companies to raise between $107,000 and $250,000 within 12 months and can proceed with documents certified by the company’s CEO, rather than an Crypto Trader, Bitcoin Gemini, Bitcoin Formula, Bitcoin Era, Cryptosoft accountant.
„In today’s environment, many startups or established small businesses face difficulties in accessing urgently needed capital in a timely and cost-effective manner,“ SEC Chairman Jay Clayton said.