On October 30, 2015, the U.S. Securities and Exchange Commission (SEC) voted on and adopted Title III of the JOBS Act (Jumpstart Our Business Startups Act). The JOBS Act is intended to encourage small business startup funding by simplifying federal regulations and thus permitting individuals to become investors.

Title III of this Act creates a federal exemption under the securities laws so that companies are permitted to offer and sell securities by crowdfunding which allows for non-accredited investors. These new rules will become effective 180 days following the publication in the Federal Register. The SEC states the forms which will enable funding portals to register with the Commission will be effective January 29, 2016.