Mar. 15, 2023
March 15, 2023 This rule adding exmemptions is flawed and should not be supported. The proposed rule exempts non-reporting companies from registering certain securities offerings under the Securities Act, if they are exclusively sold to accredited investors. The lack of transparency makes it harder for household investors to make informed investment decisions, potentially leading to losses. Adding exemptions to any company that allows further lack of transparency only allows bad actors to take advantage of the system and opens harm and abuse to investors. The proposed rule change would without a doubt be exploited and manipulated, offering new opportunities to engage in fraud practices. By limiting the exemption to accredited investors, hedge funds could create fake accredited investor accounts to conduct manipulative behavior outside of regulatory oversight. The economy is on its last legs. We cannot afford the SEC to remain complacent in companies abusing the system going forward and this would only give them one more tool to exploit. Allowing the rule change to go forward would only prove the SECs complaceny and would be another example of their failed attempts of transparency in the market.