SEC Proposes Rule Changes to Harmonize, Simplify and Improve the Exempt Offering Framework

The Securities and Exchange Commission today announced that it has voted to propose a set of amendments that would harmonize, simplify, and improve the exempt offering framework to promote capital formation and expand investment opportunities while preserving and enhancing important investor protections. Offerings of securities must be either registered with the Commission or qualify for an exemption from the Commission’s registration requirements. A majority of entrepreneurs and emerging businesses raise capital using the exempt offering framework. This capital formation activity ranges from seed capital for new businesses to growth capital for companies on the path to an initial public offering.