Author: Walter Frick
Date: March 22, 2012
The Senate today passed the JOBS Act 73-26, a variety of provisions centered around easing access to capital for startups and removing barriers to taking private companies public.
The bill, which had previously passed the House with bipartisan support and is supported by the White House, was amended on the floor of the Senate to change the provision legalizing crowdfunding, small equity investments into private companies by non-accredited investors.
The amendment, based on a bill co-sponsored by Senators Jeff Merkley (D-OR), Michael Bennett (D-CO), Mary Landrieu (D-LA), and Massachusetts’ own Scott Brown (R-MA), requires that crowdfunding investments go through an “intermediary” registered with the SEC, that would function as a so-called eBay of crowdfunding.
Because of the amendment, the bill now moves back to the House to consider the amended version. Read more here.