Federal Reserve Governor Jeremy Stein said raising capital through crowdfunding on the Internet may help spur growth in low- and moderate-income communities and that the central bank should support the effort.
Crowdfunding, a form of fundraising often associated with technology startup companies and artist funding, “can be adapted to community development investing,” Stein said in the text of remarks prepared for delivery in Washington.
He didn’t comment about the state of U.S. economy or monetary policy in his prepared remarks.
“While individual investment amounts may be small, the total amount of funds raised from this source can be large,” Stein said.
Fed officials should “keep our finger on the pulse of financial innovation and the changing dynamics of the financial services industry — even in those parts of the industry where we do not have a direct regulatory role,” he said.
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