For crowdfunding, the revolution will be localized

(MoneyWatch) Remember the JOBS Act? The 2012 law touted by President Barack Obama as a "game-changer" was going to free entrepreneurs to tap into oceans of online funding from small investors, spurring the creation of businesses and jobs.

Don't hold your breath. Although the Securities and Exchange Commission has yet to write final rules for this form of "crowdfunding," the initiative is best described as follows: dead on arrival.

Securities-based crowdfunding, where someone puts up money to take a small stake in what they hope will be the next Facebook -- was touted as a way to open up vast new sources of startup funding. Small businesses and entrepreneurs, currently banned