What is NewFi?
While the DeFi movement tries to navigate regulatory waters by decentralizing investment platforms so that they cannot be shut down, NewFi is an attempt to work within existing regulatory frameworks.
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While the DeFi movement tries to navigate regulatory waters by decentralizing investment platforms so that they cannot be shut down, NewFi is an attempt to work within existing regulatory frameworks.
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Within the JOBS ACT passed in 2012, was a serious attempt at modernizing securities laws. There now exists a regulatory framework to raise money from investors online. Due to issuer options and ability to file Reg A+, Reg CF, and Reg D forms and relaxed investor qualification rules, companies can raise money via equity offerings through regulated platforms and portals easily.
Below is attached some in-depth reading into the official regulations, expectations, and successes of the SEC's attempt to modernize securities laws.
"The Securities and Exchange Commission is publishing this release to solicit comment on several exemptions from registration under the Securities Act of 1933 that facilitate capital raising. Over the years, and particularly since the Jumpstart Our Business Startups Act of 2012, several exemptions from registration have been introduced, expanded, or otherwise revised. As a result, the overall framework for exempt offerings has changed significantly. We believe our capital markets would benefit from a comprehensive review of the design and scope of our framework for offerings that are exempt from registration. More specifically, we a ls o believe that issuers and investors could benefit from a framework that is more consistent and addresses gaps and complexities. Therefore, we seek comment on possible ways to simplify , harmonize, and improve the exempt offering framework to promote capital formation and expand investment opportunities while maintaining appropriate investor protections."