January 16, 2013
NO PUBLISHED REGULATIONS MEANS NO INSURANCE FOR EVEN NON EQUITY BASED CROWDFUNDING PLATFORMS
Currently, there are no U.S. based insurance companies which sell liability /or DO coverage to CrowdFunding platform operators whether equity based or otherwise.
This is because without regulations which were supposed to be published by Jan 5 2013 by the SEC are not ready. Without these regulations insurers cannot determine risks. Worse yet, there is no indication as to when these regulations will be published.
No regulations has not only affected planned equity based crowdfunding platforms, it is now effecting non equity based platforms which are running, creating jobs and opportunity for small startups. The owners, operators, directors, officers and managers of these small business are all at the risk of losing much of their personal assets in case of law suits.