NASAA, SEC Sign Crowdfunding Agreement as Rules Kick In

"The agreement not only builds on an already productive relationship between the SEC and state regulators, it also offers additional insights and protections as we help companies grow and create jobs while providing new opportunities to investors," said Piwowar.

Rothman added that the agreement will "strengthen collaboration among state and federal securities regulators to help expand small-business investment opportunities while also protecting investors. Ongoing dialogue is essential to carry out our responsibilities going forward. With this MOU in place, we have an opportunity to share information that will bolster our efforts to support small-business capital formation and prevent fraud."

Under the new rules, companies will have more flexibility to engage in intrastate offers through websites and social media without having to register their offering with the federal government, NASAA states.

Companies now can also raise up to $5 million per year through other amended rules, which could facilitate the development of regional offering exemptions at the state level to permit companies to raise from investors in a specific region. The previous limit was $1 million.

— Check out Crowdfunding and Peer Lending: Time to Swim With the Sharks? on ThinkAdvisor.