craschworks

Should non-millionaires be able to invest small amounts in local businesses or other ventures that they believe in, without the ventures having to spend tens of thousands (or more) on state or federal securities compliance? We believe so, provided that the offerings can be seen and discussed openly, and have other requirements and limitations to prevent fraud. Without costing anything, such a regulatory change would create meaningful jobs, spur innovation, and fuel the economy.

But this is currently illegal thanks to securities laws written in the 1930s, when ordinary people had no way to check the claims of fraudsters armed with smooth telephone voices and fancy printed letterhead with New York City addresses.

Bipartisan efforts to modernize these laws and introduce a “crowdfunding exemption” have been progressing rapidly over the past year. H.R.2930, the Entrepreneur Access to Capital Act, overwhelmingly passed the House (407-17) last November, with White House support. Now it and two other crowdfunding bills (S.1791 and S.1970) are stalled in the Senate. Sources there say that the Senate needs to see that public interest in these proposals exists, before they will venture to consider them.

To demonstrate public interest (as well as the power of crowdfunding), we are launching a campaign to take out a full page ad in the Washington D.C. newspaper Politico, which is distributed in printed form to Congressional staffers and other DC types.

The House has already spoken, and the White House has told us that they are ready to sign – we now just have to push some demonstrable public interest in the Senate’s face.

via Tell the Senate to Legalize Crowdfunded Securities with Full-page Ad in Politico — LoudSauce.