Once fully implemented, Title III of the JOBS Act will allow general solicitation of equity investments from the general public. Anyone with access to a computer will now also have access to registered funding portals where they can request and receive capital contributions. The most optimistic proponents of Title III estimate that it will unleash a new wave of capital into the U.S. investing market to the tune of $300 billion. As currently written, the income-cap regulations for unaccredited investors lack teeth. By failing to create an asset verification process for unaccredited investors, the Securities and Exchange Commission has created a perfect storm of factors, which will allow everyday consumers to overextend their finances on junk-investments.
Securities Regulation - An SEC-mandated Asset Verification System for Unaccredited Investors Must Be Added to the Proposed Regulatory Regime Under Title III of the JOBS Act,
Emory Corp. Governance & Accountability Rev.
Available at: https://scholarlycommons.law.emory.edu/ecgar/vol1/iss1/7