SEC May Relax Crowd Funding Income Verification Rules

The Securities and Exchange Commission (SEC) may loosen income verification rules to make crowd funding more attractive for small businesses, reports Dave Michaels for Bloomberg. The plan has not been formally announced and is subject to a vote scheduled for October 23.

SEC's crowd funding concern

Crowd funding, one part of the JOBS Act, is meant to give small businesses a way to raise money from people that don’t normally invest in stocks. This has raised concerns about crowd funding being used to defraud people who aren’t financially savvy. On the other hand,...