Don't Wait for the Crowd: Legalization of Crowdfunding Could Take a While. Don't Wait for the Crowd: Legalization of Crowdfunding Could Take a WhileChris Hurtado and Bruce Campbell, Campbell Law Group Crowdfunding — raising money online to finance something — has obvious appeal in this era of social media and rapidly expanding Internet penetration.
For companies seeking to raise investment dollars, however, crowdfunding is largely unavailable as a tool to attract investors based in the U.S. Crowdfunding is currently impractical in the U.S. because all securities offered to U.S. investors must either be registered with the U.S. Securities and Exchange Commission (SEC) or there must be an applicable exemption from registration. Sustainable Economies Law Center. Canadian Startups are Shut Out of Crowdfunding.