Whether you are conducting a crowdfunding to investors under Reg CF, generally soliciting accredited investors for an initial coin offering (ICO) or other capital raise using Rule 506(c), or targeting the general public with a Reg A+ offering, endorsements can be extremely valuable tools if you are trying to crowdfund a new product or a capital raise. Getting them can be a challenge - and a tempting option is to pay an endorser some kind of compensation, or offer a donation to their favorite charity.
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Sam Bankman-Fried, the founder of Alameda Research and FTX, is no stranger to making headlines. Recently, Bankman-Fried has been in the news for his legal battle with the United States Securities and Exchange Commission (SEC). On January 3rd, he pleaded not guilty to federal charges of fraud and money laundering and faces a trial set for October. If convicted, he could face up to 115 years in prison.
But he’s not the only one on the hook. There are several other players from FTX and Alameda who are involved in the case and face their own criminal charges levied by the federal government, the SEC, and the Commodity Futures Trading Commission (CFTC).
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Reg CF, or Title III of the JOBS Act, just went into effect May 16, 2016. It allows companies to ask for the $1 million within the span of a year, but it does come with a whole suite of obligations and restrictions. For most companies, Reg CF won’t be practical unless changes to the law improve Reg CF. However, for some companies, like Legion M, Reg CF might just be that perfect way to raise much needed capital. Particularly enticing is that Reg CF allows companies to raise money from all types of investors, including non-accredited investors.
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In December 2022, the Consumer Financial Protection Bureau (CFPB) charged Wells Fargo with $3.7 billion USD in redress and penalty fees for illegal conduct that affected 16 million customers. It's one of the largest penalties imposed on any U.S. bank, and it's a big deal for investors and consumers alike.
So what exactly happened with Wells Fargo? Let’s take a closer look at why Wells Fargo was fined and what it means for its customers and investors.
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The Senate Appropriations Committee introduced the FY2023 omnibus appropriations bill in December that will keep the government funded through September 2023. On December 29, 2022, President Biden signed it into law.
This law outlines key government initiatives and how much funding they will receive, which will impact various industries and communities across the nation not only this year but in years to come. Understanding all that the omnibus bill includes can open up potential opportunities for investors. For investors with an accredited investor certificate, private offerings are available. In recent years crowdfunding trends have become more and more popular, and many private companies rely on accredited investors to fund their businesses. This not only opens up new opportunities for investors but also opens up insane growth potential for companies.
Let’s take a closer look at what the omnibus bill contains and what it means for investors.
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In recent years, celebrity involvement in the crypto space has been on the rise. From tech moguls to Hollywood stars, some of the most influential figures have taken a vested interest in digital currencies such as Bitcoin and Ethereum.
While there are people who have earned celebrity status because of crypto, that’s not who we are covering here. Rather, these are people who have used their mainstream fame to launch, support, or propel cryptocurrencies and blockchain technology.
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In the world of cryptocurrency and blockchain, a few individuals have become celebrities—or at least somewhat famous—due to their involvement in the industry.
Cryptocurrency has become a mainstream phenomenon, with immense potential for revolutionizing the way we do business and use digital currency. As such, it has garnered a lot of attention from experienced and novice investors alike. Cryptocurrency investments are often highly speculative and come with a high degree of risk. However, accredited investors have additional opportunities to invest in crypto that aren’t available to the general public through verified investing, which enables them to be more selective. This includes investing in cryptocurrency through ICOs or venture capital funds. If you know you qualify as a verified investor, get your investor accreditation today to take part in these exclusive offerings.
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Entrepreneurs who seek startup capital through crowdfunding and the private placement investors who provide that funding now have more than three years of experience with new Rule 506(c) under SEC Regulation D. The 2012 JOBS Act created that Rule to facilitate general solicitations from qualified investors. In 2015 alone, private placement issuers raised roughly $38 billion in startup capital under the Rule. The figures for 2016 are expected to be double that. Despite this clear growing trend, some prospective issuers have expressed reluctance to jump into the general solicitation crowdfunding arena, presumably out of compliance concerns that are common among private placement issuers. New technology and services along with better educated service providers may help reverse this initial reluctance by giving issuers better assurances that the Rule's fundraising requirements are being properly complied with.
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The United States is behind in creating a digital dollar. Other countries, including China, have implemented a national digital currency, but the US has yet to do so. Is a digital dollar in the national best interest? That’s what a special task force, assembled by President Biden, is currently researching.
The team is meant to research and develop the potential design and deployment of a United States central bank digital currency (CBDC) and the actions required to launch if a United States CBDC is deemed in the best national interest.
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There has been much debate amongst both the public and regulatory government agencies as to whether or not digital assets are securities.
When it comes to investing in digital assets, though, it’s not so important what you as an individual investor believes is true, but rather, what the law dictates. Before investing in cryptocurrencies or other digital assets, it’s critical to know if U.S. federal securities laws apply.
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