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SEC approves new crowdfunding rules

[NEW YORK] US securities regulators approved new crowdfunding rules on Friday, allowing start-up companies to raise money from mom-and-pop investors over the internet.

Private companies were previously allowed to solicit only accredited investors - those with a net worth of at least US$1 million, excluding the value of their homes, or annual income of more than US$200,000.

The Securities and Exchange Commission voted 3 to 1 to approve the measure - the last piece of the Jumpstart Our Business Startups (JOBS) Act, a 2012 law enacted with wide bipartisan support that relaxes federal regulations to help spur small business growth.

REUTERS