The House is expected to vote July 5, 2016 on a crowdfunding bill by Rep. Patrick McHenry, the Fix Crowdfunding Act. CEI financial policy expert John Berlau commented on why it is a much-needed expansion of the bipartisan JOBS Act of 2012.
Today, the US House of Representatives will likely pass by wide bipartisan margins two bills making modest but significant expansions of the deregulation in the Jumpstart Our Business Startups Act of 2012. These changes will make it easier for entrepreneurs with small but high-quality companies to raise capital through equity crowdfunding. They will also give middle-class investors more opportunities to build wealth with promising startups.
While it is disappointing that provisions were dropped that would have given U.S. entrepreneurs parity with those who can crowdfund in other countries, the earlier, overwhelming 57-2 vote for this legislation in the House Financial Services Committee and the likely strong vote today of the full House is a refreshing reminder that both parties can sometimes still come together to address the burdens of over-regulation. The JOBS Act is one of the greatest bipartisan accomplishments of both President Obama and GOP members of Congress. This legislation will greatly help burnish that legacy.
CEI sent a letter of support to the Hill in favor of the legislation.
Berlau's related Forbes commentary.