President Barack Obama is signing the JOBS ACT on Thursday, which would make crowdfunding legal for startups. The Jumpstart Our Business Startups (JOBS) Act has gone through the Senate and House with a few modifications. The legislation will allow startups to raise $1 million or less to purchase a limited amount of equity.
The JOBS ACT is also eliminating the 500-shareholder rule, which would mean that startups can wait longer to publicly report financial data to the SEC. The JOBS Act passed in the Senate with a 73 to 26 passing vote and the revised law passed in the House with a 380 to 41 majority.