Brazil's Securities and Exchange Commission (CVM) has extended the public consultation period for its proposed overhaul of investment crowdfunding regulations. Stakeholders now have until January 23, 2026, to provide feedback on the new framework intended to replace CVM Resolution 88. This extension acknowledges the significance of the proposed changes and provides the market with crucial additional time for thorough analysis and discussion.
Responding to a Dynamic Market
The regulatory update is a direct response to the rapid evolution of Brazil's crowdfunding market, particularly the recent surge in securitization transactions. The CVM aims to modernize the existing rules to accommodate this growth and facilitate the gradual integration of the agribusiness sector into the capital markets. This initiative is a key component of the CVM's 2025 Regulatory Agenda, reflecting its priority to adapt to new financial structures.
Recent data underscores the sector's dynamic expansion, reinforcing the need for updated regulations. By the second quarter of this year, crowdfunding offerings had already reached $404.4 million, a 69% increase over the $208.9 billion raised in 2024. The number of authorized platforms has also grown from 66 to 74, signaling a robust and increasingly competitive environment.
Expanding Access and Raising Capital Limits
A central element of the proposal is the expansion of eligible issuers, which will formally open the market to new participants. The draft regulation explicitly includes registered securitization companies, individual rural producers, and agricultural cooperatives as potential issuers. This move codifies emerging market practices and provides a clear legal framework for these entities to raise capital through crowdfunding platforms.
In line with broadening access, the CVM proposes a substantial increase in fundraising limits per offering. The general cap for business companies and cooperatives would rise from $2.7 million to $4.5 million, while securitization companies could raise up to $9.1 million. Rural producers would be subject to a specific limit of $460,000 per harvest, tailoring the rules to different sector needs.
The proposal also eliminates the current annual revenue cap of $7.3 million for unregistered companies seeking to raise funds. This is a pivotal change that will allow larger, privately-held businesses to utilize crowdfunding as a viable financing mechanism. The move signals a strategic shift from a framework focused exclusively on small enterprises to a more inclusive capital formation tool.
Modernizing the Investment Framework
The new framework also introduces several adjustments to enhance the investment process and protect participants. These include revised rules for lock-up periods, which restrict the resale of securities, and new provisions allowing for reinvestment within the same year. Furthermore, the CVM is updating the definition of an "active investor" to better reflect current market dynamics and participation levels.
A significant innovation is the formalization of a distribution model that allows traditional financial institutions to offer crowdfunding products to their clients. This "on behalf of" structure could dramatically expand the reach of offerings by bridging the gap between fintech platforms and established intermediaries. The goal is to channel more capital into the ecosystem while maintaining clear ownership and control standards for investors.
To bolster market integrity, the proposed rules emphasize greater transparency and standardized disclosures. The CVM plans to introduce specific information annexes tailored to each type of issuer, ensuring investors receive relevant and comparable data. Platforms will also be required to publish key performance indicators, promoting accountability and helping investors make more informed decisions.
The extension of the consultation period underscores the CVM's commitment to a collaborative regulatory process for Brazil's burgeoning crowdfunding sector. The proposed changes are comprehensive, aiming to build a more sophisticated, inclusive, and transparent market for alternative investments. The final regulation will be instrumental in defining the future of capital access for a wider range of businesses, especially within the critical agribusiness and securitization industries.