This article describes the European Community’s proposed approach to regulate crowdfunding service providers. Even though it is not directly related to a possible US regulation, I found that it still might be of interest and that it even might serve as a model for a similar US approach. I especially liked the idea, similar also to the US approach on the regulation of financial institutions, of different layers of regulation and that providers have the option to operate under the new EU regulation or under respective domestic law of the individual member. I believe that this could be an approach for the U.S. as well, since it would allow to give the states the freedom to adopt their own regulation but would also provide a federal regulation that serves as a minimal standard.
Eliane, thanks for sharing. It’s always fascinating to me to see how the EU handles regulatory issues that may or may not conflict with existing member state regulations. I imagine it is particularly difficult for new and innovative spaces such as crowdfunding. I agree that some regulation is necessary and if the Facebook hearings on Capitol Hill this week are any indication, I imagine Congress will be woefully behind.