However, its use has declined sharply since the 1990s. Many attribute the drop to both the limited amount of money a company could raise and the costly impediment of navigating a patchwork of differing state laws before it could be sold.
The JOBS act required the SEC to raise that threshold up, from $5 million to $50 million.
But the SEC decided to partially preempt state oversight for some of the larger deals in the hope it will entice more people to tap Regulation A in the future.