Day: February 4, 2013

By Liyan Chen

The JOBS Act has led to the boom of crowdfunding platforms across many industries, and it seems like it is also poised to change the face of the real estate financing. As Bloomberg pointed out recently, the implementation of the JOBS Act will open up opportunities for real estate crowdfunding start-ups by saving them time and money on the legal process.

Here’s some background: Before the passage of the JOBS Act, real estate financing was mainly available to accredited investors under Regulation D of the Securities Act of 1933. But the JOBS Act, which eases restrictions on investments, will allow more individuals, including non-accredited investors, to invest up to $2,000 a year or 5 percent of their income or net worth in commercial real estate projects.

Currently, these real estate crowdfunding platforms, like Washington, D.C.-based Fundrise for example, have to go through a lengthy approval process by the SEC and local regulators.

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By Anton Root

President Barack Obama nominated Mary Jo White, a former federal prosecutor, to chair the Securities and Exchange Commission (SEC) earlier today.

White first rose to national prominence in 1993, when she became the U.S. attorney for the Southern District of New York, a position she held until 2002. While there, she oversaw the prosecution of high-profile individuals like mafia boss John Gotti, terrorist Sheik Omar Abdel Rahman, and even Osama Bin Laden. But she is best known for being a tough leader with a knack for punishing white collar crime. “You don’t want to mess with Mary Jo,” the president said when announcing his nomination.

“When it comes to prosecuting white collar criminals, she’s got an outstanding track record,” Douglas Ellenoff, of Ellenoff Grossman and Schole LLP, told Crowdsourcing.org. “She’s really an interesting and credible pick for the president, as it relates to the administration’s – and now the SEC’s – commitment to enforcing violations of securities laws.”

The Congress is expected to support the nomination, though some may question her knowledge of complicated financial laws. Her trips back and forth through the public-to-private-sector revolving door may also raise a few eyebrows: before and after her stint overseeing New York’s Southern District, White practiced law at Debevoise & Plimpton, defending some of the biggest names on Wall Street.

What does White’s selection to head the SEC mean for crowdfunding and the JOBS Act?

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