The fear in this situation is that an in-state investor could purchase through an
intrastate offering then sell to an out-of-state investor.
The agency will also "aim to finalize rules updating the
intrastate offering exemption," which were issued in December and include proposed amendments to existing Securities Act Rule 147 to modernize the rule for
intrastate offerings to further facilitate capital formation, including through crowdfunding.
The staff is working on proposed rules to issue later this year that will allow crowdfunding in an
intrastate offering. The proposed rules must balance the rewards of capital formation and possible job growth with appropriate investor protection measures.
The federal exemption that state crowdfunding exemptions have turned is the federal
intrastate offering exemption found in [section]3(a) (11) of the Securities Act and in Rule 147 adopted by the Securities and Exchange Commission.
For instance, Securities Act Rule 147, adopted in 1974, created a safe harbor that issuers often rely on for
intrastate offerings, "and how an issuer might conduct an
intrastate offering using the Internet was not contemplated at that time," White explained.
For instance, Rule 147, adopted in 1974, created a safe harbor that issuers often rely on for
intrastate offerings, "and how an issuer might conduct an
intrastate offering using the internet was not contemplated at that time," White explained.
The Division of Securities has issued rules, WAC 460-99C, that set forth how exemptions from registration set forth in RCW21.20.880 for
intrastate offerings of securities exempt under section 3(a)(11) of the Securities Exchange Act of 1933 and Securities Exchange Commission Rule 147,17 C.F.R.
Many states, including Vermont and Maine in 2014, have passed laws to allow non-accredited investors to invest in local companies via more limited
intrastate offerings. New Hampshire does not yet have an intrastate crowdfunding system, though federal Title III crowdfunding may obviate the need for a new state law.
The SEC also issued in December proposed amendments to existing Securities Act Rule 147 to modernize the rule for
intrastate offerings to further facilitate capital formation, including through crowdfunding.
The SEC also issued proposed amendments to existing Securities Act Rule 147 to modernize the rule for
intrastate offerings to further facilitate capital formation, including through crowdfunding.
The exemption covers
intrastate offerings over the internet that would typically raise capital from many investors, each of whom would invest a limited amount.