Jumpstart Our Business Startups (JOBS) Act
The Jumpstart Our Business Startups (JOBS) Act is a law, passed in April 2012, intended to ease SEC regulations on small businesses. Two of the major components of the law, Title II and Title III, have allowed massive growth of the crowdfunding industry. Title II has been in effect since September 2013 and allows mass marketing of private securities offerings. Title III, which went into effect in mid-2016, allows anyone, including non-accredited investors, to participate in equity crowdfunding subject to some regulation: businesses may raise no more than $1 million within a 12-month period, and non-accredited investors are subject to investment caps based on their annual income.
For more on Reg 506b and how EquityMultiple structures offerings legally, please review this article.