The Securities and Exchange Commission said Wednesday that the agency has adopted amendments to increase the amount of money companies can raise through crowdfunding to adjust for inflation.
The securities regulator also approved amendments that adjust for inflation a threshold used to determine eligibility for benefits offered to “emerging growth companies” (EGCs) under the Jumpstart Our Business Startups (JOBS) Act.
“Regular updates to the JOBS Act, as prescribed by Congress, ensure that the entrepreneurs and investors who benefit from crowdfunding will continue to do so,” said SEC Acting Chairman Michael Piwowar, in a statement. “Under these amendments, the JOBS Act can continue to create jobs and investment opportunities for the general public.”
The SEC is required to make inflation adjustments to certain JOBS Act rules at least once every five years after it was enacted on April 5, 2012.
In addition to the inflation adjustments, the SEC adopted technical amendments to make several rules and forms conform to amendments made to the Securities Act of 1933 and the Securities Exchange Act of 1934 by Title I of the JOBS Act.
The new thresholds were approved by the Commission on March 31 and become effective when they are published in the Federal Register.