Mar. 15, 2023
Writing to express my disapproval for a proposed SEC rule, please see my thoughts below: The proposed rule exempts non-reporting companies from registering certain securities offerings under the Securities Act, if they are exclusively sold to accredited investors. However, this exemption has significant flaws This rule definitely does not protect household or retail investors, it reduces the information available to them. The lack of transparency makes it harder to make informed decisions around where to invest money. This rule can and will be exploited by manipulative hedge funds that have already shown a history of bad, misleading, and dangerous behavior in the securities market. An exemption like this would offer them a new way to engage in such practices. By limiting the exemption to accredited investors, hedge funds could create fake accredited investor accounts to conduct manipulative behavior outside of regulatory oversight. Let me know if you need any other thoughts on this! Thanks for being open to citizen feedback!