Smaller companies could pull in more private capital before having to register with the SEC under a new agency proposal that lacked Democratic support.
The Securities and Exchange Commission voted to release the plan Wednesday, with Democratic SEC Commissioner Allison Lee saying she was opposed. The agency didn’t immediately release an official tally.
The proposal would increase capital raising limits for Regulation Crowdfunding, Rule 504 of Regulation D, and Regulation A’s Tier 2, which is more restrictive than Tier 1.
The regulations are geared toward smaller companies. Larger companies typically use Rule 506 of Regulation D, which allows them to...