Already months behind schedule, federal regulators charged with establishing the rules to implement new online crowdfunding portals still cannot say when they will issue those guidelines. On Monday, the frustration from entrepreneurs, investors and those trying to build those financing portals was on full display at a forum in Washington.
During the event, David Blass, a chief counsel at the Securities and Exchange Commission, said his team is working diligently to craft regulations required to give the go-ahead to equity crowdfunding sites, which were authorized a year ago as part of the Jumpstart Our Business Startups Act. The law charged the SEC with establishing rules by the end of last year to govern the sites, which will allow entrepreneurs to raise small amounts of money from non-accredited investors.
However, mounting concerns over potential investment fraud and a leadership change at the agency has slowed the process, and on Monday, Blass said he still does not know when the rules will be finalized.