Friday, December 02, 2011

Missouri Advisory Release Alerts People to U.S. Congress Crowdfunding Bills

The Missouri Secretary of State, Robin Carnahan, issued an advisory release alerting readers about two bills in the United States Congress, the Entrepreneur Access to Capital Act (H.R. 2930) and the Democratizing Access to Capital Act of 2011 (S.1791). The legislation covers crowdfunding, raising the Reg A exemption cap, and raising the 500 shareholder threshold. The crowdfunding provision allows general solicitation and advertising to be used for Rule 506 offerings, so long as the purchasers are accredited investors. While Secretary of State Carnahan might agree that the bills are capital raising measures necessary to create jobs, she wants to ensure that the legislation does not reduce the state securities regulators' authority to protect investors.