“The Senate is the place where bills go to die.” –Bill Maher
All Posts: ‘Crowdfunding’
Is the House Crowdfunding Bill Being Killed in the Senate?by Scott Edward Walker on March 1st, 2012
Crowdfunding Bill Stuck in the Senateby Scott Edward Walker on January 13th, 2012
In early November, the U.S. House of Representatives overwhelming passed the Entrepreneur Access to Capital Act, a crowdfunding bill which permits startups to offer and sell securities via crowdfunding sites like Kickstarter or social networking sites like Facebook. As I discuss below, this is a game-changer for startups and lifts certain securities law prohibitions that have been on the books since the 1930’s.
The Obama Administration supports the House bill and noted in its Statement of Administrative Policy that: “This bill will make it easier for entrepreneurs to raise capital and create jobs.” Unfortunately, two very different crowdfunding bills have been introduced in the U.S. Senate, and committee hearings have been surprisingly focused on fraud concerns and other potential problems. Indeed, it is unclear whether the Senate will even pass a crowdfunding bill (and, if so, in what form).