The JOBS and Investor Confidence Act (HR 6380), also called JOBS Act 3.0, is a grouping of 32 business friendly bills put together in a bipartisan effort to actually get something done. House Financial Services Committee Chair Jeb Hensarling stated;
“Without a steady stream of small businesses in the pipeline, the U.S. cannot sustain strong long-term economic growth, much less compete with China.”
So now Congress has something to hang their hat on.
Included on the list of bills is a change in existing crowdfunding law (Reg CF). Introduced by Representative Patrick McHenry and co-sponsored by Maxine Waters, the Crowdfunding Amendments Act allows crowdfunding investors to pool their money together into a fund that is advised by a registered investment advisor (RIA). A kind of special purpose vehicle that should make crowdfunded issuers more appealing to institutions and companies more inclined to use the securities exemption – depending on the final language. More interest in Reg CF means better offerings for retail investors – a type of investor protection.
Representative McHenry released a statement on JOBS Act 3.0;
“The JOBS and Investor Confidence Act changes this by supporting innovative new forms of capital formation like investment crowdfunding, which—in the proper regulatory climate—can become a vital tool for entrepreneurs and small businesses. Today’s bipartisan passage of this legislation is another important step in the House’s ongoing work to support American small businesses and entrepreneurs.”
The exact language of the bill is not up yet on the Congress.gov but we will be certain to share once it is available.