Regulation Crowdfunding, commonly known as Reg CF, has reached an impressive milestone by raising over $2 billion, according to a recent announcement from Crowdfund Capital Advisors (CCA). This landmark achievement comes a little over a decade after the JOBS Act of 2012, signed into law during the Obama administration, laid the groundwork for this funding mechanism.

Reg CF was created as part of the JOBS Act, an Obama-era bill aimed at addressing various financial issues following the housing crisis. The bill was a rare example of bipartisan legislation, a feat which seems increasingly challenging in today's political climate. After the JOBS Act became law in 2012, it took the Securities and Exchange Commission (SEC) several years to finalize rules allowing the security exemption to go into effect in 2016.

In its early days, the exemption was not nearly as popular as it is currently. Now, platforms like StartEngine raise hundreds of millions of dollars per year for businesses across the U.S. This includes StartEngine raising over $18 million from retail investors in its ongoing equity crowdfunding raise that anyone can invest in.

Originally, firms were permitted to raise up to $1.07 million via online sales of securities through Reg CF. However, given the scope and scale of funding needs for growing companies, the SEC later revised this figure to $5 million for any 12-month period.

Despite its success today, Reg CF faced significant opposition. Critics and advocacy groups were concerned that the exemption would open up opportunities for fraudulent activities. Such fears have proven largely unfounded as issuers are required to work through FINRA-regulated Funding Portals or Broker-Dealers.

According to CCA, it took just two years to raise the second billion dollars, a stark contrast to the roughly five years needed to raise the first billion. Over 6,400 companies have successfully leveraged Reg CF to raise money through more than 7,400 individual securities offerings. CCA estimates that this has led to the creation of more than 400,000 jobs, underscoring the mechanism's potential for promoting economic growth.

Based on the multiplier effect, CCA suggests that firms utilizing Reg CF have added almost $5 billion to local economies. This impact is particularly noticeable outside of major financial centers, making up over 85% of the businesses funded.

While equity crowdfunding has made substantial progress, industry insiders believe more can be done. There is a growing call for the exemption limit to be increased to $20 million, allowing more mature companies to utilize Reg CF and potentially reducing investor risk.

For its part, CCA has introduced a new investment vehicle, D3VC, aimed at combining artificial intelligence with crowdfunding. The organization views Reg CF as a transformative force in the future of fundraising and investment.

As Reg CF continues to evolve, its burgeoning success offers a testament to the enduring impact of the JOBS Act, an Obama-era legislation designed to rejuvenate economies and create jobs.