Canada    FinTech Guide    Chapter 5    United States of America


5. Crowdfunding / Crowdinvesting / Crowdlending
United States of America  United States of America

The social and political climate towards crowdfunding platforms is generally favorable. There are no reservations.



Legal Affairs


Crowdfunding investing platform in the United States must register with the SEC and FINRA as either crowdfunding portal or a broker-dealer. Crowdfund investing portals may only facilitate the initial sale of securities that are not registered with the SEC and that are sold pursuant to Regulation Crowdfunding (“Regulation CF”). Crowdfunding investing portals cannot facilitate secondary sales of unregistered securities and the compensation such portals can receive is limited. Broker-dealers may facilitate the initial sale of securities that are sold under Regulation CF and secondary sales of those securities. Broker-dealers may also collect a commission or transaction related compensation for their services.



Economic Conditions


In a market as large as the United States, this is an impossible question to answer.



Miscellaneous


Crowdfunding investing platform in the United States must register with the SEC and FINRA as either crowdfunding portal or a broker-dealer. Crowdfunding investing portals may only facilitate the initial sale of securities that are not registered with the SEC and that are sold pursuant to Regulation CF. Crowdfunding investing portals cannot facilitate secondary sales of unregistered securities and the compensation such portals can receive is limited. Broker-dealers may facilitate the initial sale of securities that are sold under Regulation CF and secondary sales of those securities. Broker-dealers may also collect a commission or transaction related compensation for their services.



Contributing Authors

Carlsmith Ball LLP

Gerald A. Sumida
Honolulu, Hawaii, USA


Carrington, Coleman, Sloman & Blumenthal LLP

Bret Madole
Dallas, Texas, USA


Charles Jordan
Dallas, Texas, USA


Duane Morris LLP

Hope P. Krebs
Philadelphia, Pennsylvania, USA


Thomas Schmuhl
Philadelphia, Pennsylvania, USA


Frost Brown Todd LLC

Joseph Julnes Dehner
Cincinnati, Ohio, USA


Gray Plant Mooty

Christopher Carlisle
Minneapolis, Minnesota, USA


Gaylen Knack
Minneapolis, Minnesota, USA


Holland & Knight LLP

Jorge Hernandez-Toraño
Miami, Florida, USA


Miller Nash Graham & Dunn LLP

Chris Helmer
Portland, Oregon, USA


Kimball H. Ferris
Portland, Oregon, USA


Polsinelli PC

Anthony Nasharr
Chicago, Illinois, USA


Richard Levin
Denver, Colorado, USA

Search by:

Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018