Improving Crowdfunding Opportunities Act
12/12/2023, 4:45 PMSummary of Bill HR 2607
Bill 118 hr 2607, also known as the Improving Crowdfunding Opportunities Act, aims to make it easier for small businesses and startups to raise capital through crowdfunding. The bill seeks to amend the Securities Act of 1933 to increase the offering limit for crowdfunding from $1.07 million to $5 million.The bill also includes provisions to streamline the regulatory process for crowdfunding offerings, making it easier for businesses to comply with securities laws. Additionally, the bill includes investor protection measures, such as requiring crowdfunding platforms to provide investors with educational materials and information about the risks involved in crowdfunding investments.
Overall, the Improving Crowdfunding Opportunities Act is designed to promote economic growth and job creation by expanding access to capital for small businesses and startups. The bill has received bipartisan support in Congress and is seen as a positive step towards fostering innovation and entrepreneurship in the United States.
Congressional Summary of HR 2607
Improving Crowdfunding Opportunities Act
This bill reduces regulations applicable to crowdfunding securities and portals. Crowdfunding is used to raise capital through a large number of individuals investing potentially small amounts of money.
The bill exempts certain securities issued under crowdfunding regulations from state regulation of secondary transactions. It also exempts crowdfunding portals from (1) certain anti-money laundering reporting and recordkeeping requirements, and (2) liability for material misstatements or omissions unless the portal knowingly makes certain untrue statements or engages in fraud or deceit.
The bill revises the disclosure requirements for crowdfunding issuers with specified target offering amounts. The bill also expands the types of investors allowed to invest in these companies to include investment companies. Finally, the bill increases the aggregate amount these companies are allowed to raise in a 12-month period and generally raises the amount individuals are allowed to invest in a 12-month period.
