I think this is great but the fraud potential is going to be key. It says it will require the companies to provide basic financial documentation but it will be

I think this is great but the fraud potential is going to be key. It says it will require the companies to provide basic financial documentation but it will be interesting to see what the SEC requires. Also, what legal responsibility will these crowdfunded companies have to their investors. I also wonder how this would impact wider disclosure requirements. From what I've read, you can only have so many private investors (500?) before you are required to provide enlarged financial statements. Apparently it's one of the reasons Facebook needs to IPO--too many stockholders. If this law isn't modified in this bill--you'd have small companies who had to spend tons of resources to comply at a very young age.