Crowdfunding Sites to Keep Reporting—SEC Seeks Comment on Rules
Published Date: 3/4/2025
Notice
Summary
The SEC wants to keep collecting info from funding portals—those websites that help people invest in small businesses—to keep things clear and safe for everyone. They’re asking for comments before extending the current rules that require portals to register, update info, and report changes. This keeps investors in the know and helps the SEC keep an eye on things without adding new costs or deadlines.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
Mandatory Registration and Form Filing
If you operate a funding portal, Rule 400 requires you to register electronically with the SEC using Form Funding Portal, become a member of a national securities association under Section 15A of the Exchange Act, file amendments when information becomes inaccurate, file successor and predecessor registration/withdrawal filings on Form Funding Portal, and promptly withdraw registration when you cease operating as a funding portal.
Extra Rules for Nonresident Funding Portals
Nonresident funding portals must: (1) obtain a written consent and power of attorney appointing a U.S. agent for service of process; (2) provide the agent's name and address on Schedule C of Form Funding Portal; (3) certify they can and will provide prompt access to books and records and submit to onsite inspection and examination by the Commission and any registered national securities association of which they become a member; and (4) furnish an opinion of counsel and certify these abilities on Schedule C.
Compliance Policies, Privacy, and Recordkeeping Rules
Rule 403 requires funding portals to implement written policies and procedures to comply with federal securities laws and to follow privacy rules. Rule 404 requires portals to keep certain books and records for at least five years (with the first two years kept in an easily accessible place) and to promptly furnish requested records to the Commission, its representatives, and the registered national securities association.
Estimated Industry Time and Cost Burden
The SEC staff estimates the annual industry burden to comply with Rules 400–404 is approximately 36,315 hours per year and approximately $618,293 per year in total industry cost burden; the Commission is seeking comment on this collection under the Paperwork Reduction Act with comments due by May 5, 2025.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222 — Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-11810 — Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Its New Clock Service
Cboe EDGX Exchange just rolled out a new Clock Service that helps users sync their time systems perfectly with the Exchange. Starting May 18, 2026, they’re charging fees for this service but also offering a free trial to get everyone on board. This affects both members and non-members who want precise timing for their trading activities.
2026-11812 — Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Its New Clock Service
Cboe EDGA Exchange just rolled out a new Clock Service to help traders sync their time systems perfectly. Starting May 18, 2026, users can try it for free, but after that, there will be fees for using this handy tool. This change affects anyone who wants precise timing for trading and keeps things running smoothly.
2026-11809 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Adopt Fees for Its New Clock Service
Cboe BZX Exchange just rolled out a new Clock Service that helps users sync their time systems with the Exchange’s for better accuracy. Starting May 18, 2026, they’re charging fees for this service but offering a free trial to get everyone started. This affects both members and non-members who want precise timing for their trading activities.
Previous / Next Documents
Previous: 2025-03434 — Proposed Collection; Comment Request; Extension: Rule 17Ad-16
The SEC wants to keep a rule that makes transfer agents quickly tell the right securities depository when they start, stop, or change their info. This helps avoid delays in moving certificates. Transfer agents spend about 15 minutes and $96 each time they send these notices, totaling over $1.5 million a year, but the process is simple and keeps things running smoothly.
Next: 2025-03438 — Facial Comparison for APIS Compliance Test: Renewal of Test
U.S. Customs and Border Protection is renewing a test that helps airlines and ships quickly check travelers’ identities using a special system. This test makes sure the passenger info sent to the government is accurate and speeds up departures. Carriers who join can keep using this faster, easier process without extra costs or deadlines right now.