US SB1970 | 2011-2012 | 112th Congress
Status
Spectrum: Partisan Bill (Democrat 4-0)
Status: Introduced on December 8 2011 - 25% progression, died in chamber
Action: 2012-03-06 - Committee on Banking, Housing, and Urban Affairs. Hearings held.
Text: Latest bill text (Introduced) [PDF]
Status: Introduced on December 8 2011 - 25% progression, died in chamber
Action: 2012-03-06 - Committee on Banking, Housing, and Urban Affairs. Hearings held.
Text: Latest bill text (Introduced) [PDF]
Summary
Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2011 or CROWDFUND Act - Amends the Securities Act of 1933 (SA) to prescribe conditions under which transactions of $1 million or less involving the offer or sale of securities by an issuer through a broker or funding portal are exempt from certain registration requirements and prohibitions relating to interstate commerce and the mails (crowdfunding exemption). (Crowdfunding is a method of capital formation by which groups of people pool money, typically composed of very small individual contributions, and often via Internet platforms, to invest in a company or otherwise support an effort by others to accomplish a specific goal.) Amends the Securities Exchange Act of 1934 (SEA) to define "funding portal" as any person engaged in the business of effecting securities transactions for the account of others, solely pursuant to the crowdfunding exemption under this Act, that does not: (1) offer investment advice or recommendations; (2) solicit purchases, sales, or offers to buy the securities offered or displayed on its website or portal; (3) compensate employees, agents, or other third parties for such solicitation or based on the sale of securities displayed or references on its website or portal; (4) hold, manage, possess, or otherwise handle investor funds or securities; or (5) engage in other activities determined by the Securities and Exchange Commission (SEC). Amends the SA to set forth qualification requirements for such crowdfunding exemption, including those for intermediaries and issuers. Sets forth restrictions on sales of such exempt securities. Amends the SEA to authorize the SEC to exempt crowdfunding investors from certain shareholder caps under the Securities Act of 1933. Requires the SEC to exempt funding portals from certain registration requirements, provided that they remain subject to examination by the SEC and a national securities association. Directs the SEC to review periodically the effects of this Act upon investor protection.
Title
Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2011
Sponsors
Sen. Jeff Merkley [D-OR] | Sen. Michael Bennet [D-CO] | Sen. Kirsten Gillibrand [D-NY] | Sen. Mary Landrieu [D-LA] |
History
Date | Chamber | Action |
---|---|---|
2012-03-06 | Senate | Committee on Banking, Housing, and Urban Affairs. Hearings held. |
2011-12-14 | Senate | Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance and Investment. Hearings held. With printed Hearing: S.Hrg. 112-465. |
2011-12-08 | Senate | Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. |
Same As/Similar To
HB3606 (Related) 2012-04-05 - Became Public Law No: 112-106.
SB2190 (Related) 2012-03-13 - Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
SB2190 (Related) 2012-03-13 - Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Subjects
Administrative law and regulatory procedures
Business investment and capital
Finance and financial sector
Financial services and investments
Fraud offenses and financial crimes
Securities
Securities and Exchange Commission (SEC)
Small business
Business investment and capital
Finance and financial sector
Financial services and investments
Fraud offenses and financial crimes
Securities
Securities and Exchange Commission (SEC)
Small business
US Congress State Sources
Type | Source |
---|---|
Summary | https://www.congress.gov/bill/112th-congress/senate-bill/1970/all-info |
Text | https://www.congress.gov/112/bills/s1970/BILLS-112s1970is.pdf |