Proposal to Raise Reg CF Cap to $20 Million

By | 08/08/2018 | 3:33 pm ET

Many prominent companies and Regulation CF platforms have expressed concern over the limited amount of capital that issuers can raise under Reg CF: $1 million. On July 19, 2018, they sent a detailed letter to the SEC requesting that they raise the Reg CF cap to $20 million. In general, the Reg CF industry feels that the current $1 million cap is costing issuers time and money meeting regulatory requirements─they add that some issuers have to conduct a second offering to raise sufficient startup capital. This concern matches with SEC Chairman Jay Clayton’s remark concerning retail investors. Before the industry…

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