Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I use crowdfunding to raise money without violating securities laws in New Mexico? What are the requirements?

Requirements for Crowdfunding in New Mexico

Crowdfunding is a method of raising funds from a large number of people, typically via the internet. In New Mexico, crowdfunding is subject to securities laws, and therefore, it is important to comply with the requirements to avoid violating securities laws.

Securities Registration Requirement

According to [1.3], it is unlawful for a person to offer or sell a security in New Mexico unless the security is a federal covered security, the security, transaction, or offer is exempted from registration pursuant to Sections 201 through 203 of the New Mexico Uniform Securities Act, or the security is registered pursuant to the New Mexico Uniform Securities Act.

Exempt Securities

[1.7] provides a list of securities that are exempt from the requirements of Sections 301 through 306 of the New Mexico Uniform Securities Act. However, crowdfunding is not explicitly mentioned in this document.

Conclusion

Based on the available information, it is unclear whether crowdfunding is exempt from securities registration requirements in New Mexico. However, [1.2] states that the Model State Commodity Code shall not affect the authority or powers of the director under the Securities Act of New Mexico. Therefore, it is recommended that you consult with a legal professional to ensure compliance with securities laws in New Mexico.

Source(s):
Jurisdiction

New Mexico