July 14, 2010
There follows my comments in regards to the petition for rulemaking change #4-605:
I believe the SEC should strongly consider adjusting the current rules pertaining to securities registration so that they do not prohibit certain types of productive crowd funding, which could prove to be an amazing breakthrough in the efficient allocation of capital in our economy. I understand that we have an interest in protecting the public against investment fraud and by limiting the maximum investment of the individual to $500-$1500 and the total potential capital raised for a given venture to between $100,000 and $500,000 we limit any potential misuse but, importantly, do not limit the potential for smaller potentially profitable ventures that are often overlooked by traditional sources.
We need to do what we can to promote and sustain the entrepreneurial spirit in this country and adjusting the rules to permit certain types of crowd funding would go a long way towards achieving that objective.
Gustaf Jason Rounick