THE COMMON DENOMINATOR BETWEEN CROWDFUNDING AND SECURITIZATION OF SUBPRIME MORTGAGES: THE SEC
成果类型：
Article
署名作者：
Cohen, Priyanka
署名单位：
American University
刊物名称：
ADMINISTRATIVE LAW REVIEW
ISSN/ISSBN：
0001-8368
发表日期：
2017
页码：
671-694
关键词：
摘要：
The jumpstart Our Business Startups (JOBS) Act opened a closed, financial market to average Americans. The JOBS Act permits entrepreneurs to seek business funding from unsophisticated investors by selling them a portion of their company. As the landscape of small business.funding shifts from institutional and expert investors to unsophisticated investors under the new act, the U.S. Securities and Exchange Commission (SEC) has attempted to keep pace. Yet a closer look at how crowdfunding has developed, and how the SEC has moved to regulate it, reveals that measures already enacted are insufficient to protect novice investors. This is not a new failure. In the past, the SEC failed to properly supervise entities involved in the securitization of subprime mortgages, which contributed to the largest economic collapse since the Great Depression. This Comment draws parallels between the SEC's role during the subprime market's collapse and its current role in regulating the equity crowdfunding industry. Further, this Comment aims to offer recommendations, informed by the SEC's shortcomings in regulating key industry players of the sub prime market, in order to enact regulations protecting equity crowdfunding investors.