Colorado releases rules on equity crowdfunding

DENVER — The Colorado Division of Securities on Thursday released a set of rules that will govern how individuals and companies go about raising capital through crowdfunding. The Colorado Crowdfunding Act will go into effect Aug 5.

The new rules clarify and expand the regulations outlined in the initial Colorado Crowdfunding Act, approved by the state Legislature this spring and signed by Gov. John Hickenlooper on April 13.

Included in the new rules are specifications on the role of the required online intermediary, further description of required escrow accounts, a more detailed list of prohibited activities, and clarification on how issuers and…