SEC Regulation CF

SEC Regulation Crowdfunding, commonly known as Regulation CF or Reg CF, is the legal framework established by the Securities and Exchange Commission (SEC) under Title III of the JOBS Act. It allows companies to raise capital from the general public, including both accredited and non-accredited Investors, through SEC-registered funding portals. GigaStar Market operates as one such funding portal, facilitating the sale of Channel Revenue Tokens (CRTs) under this regulation.

Under Regulation CF, a company can raise up to $5 million in a 12-month period. Each offering requires the issuer to file a Form C with the SEC, which discloses material information about the offering including the terms, risk factors, financial statements, and use of proceeds. This transparency requirement is designed to protect Investors by ensuring they have access to relevant information before making investment decisions.

Regulation CF also establishes annual investment limits for individual Investors based on their annual income and net worth. These limits are intended to prevent Investors from overconcentrating their portfolios in higher-risk securities. The specific limits are calculated using SEC-defined formulas and are enforced by the funding portal.

All offerings conducted through GigaStar Market comply with Regulation CF requirements. This includes the mandatory 12-month holding period for CRTs purchased in primary offerings, after which they may become eligible for secondary trading. The regulation also provides for a cancellation period during which Investors can withdraw their investment commitment before the offering closes.

Regulation CF has opened access to alternative investments that were previously available only to wealthy or institutional Investors, enabling broader participation in opportunities like the Creator Economy through platforms such as GigaStar.