In a not so surprising development, the SEC announced that even SEC registered broker dealers may not act as a crowd funding intermediaries under the JOBS Act because the SEC has not adopted regulations.
Crowd funding allows companies to finance new businesses by accepting and pooling donations of up to $1 million over the Internet if certain conditions are met. However, the SEC has to adopt regulations governing these funding portals before allowing anyone to register with the SEC. Currently, the SEC has not finished adopting those regulations.
Accordingly, it is important to keep in mind that those wishing to engage in crowd funding should not engage in such activities until the SEC announces these regulations.