Could Crowdfunders Repeal the 1933 Securities Act?

Samantha Beinhacker
Director of Member Services, Jewish Funders Network

Last week we discussed the legal hurdles that crowdfunding faces in the United States– restrictions imposed the quite antiquated 1933 Securities Act that prevent non-accredited investors from financially supporting entrepreneurs and social innovators.

This week we learn that the U.S. House Committee on Oversight and Government Reform is hearing testimony to support a change to the SEC regulations which would enable small businesses to solicit funding from the general public. The UK already has such an exemption with the first-ever equity-based platform launched, and we hope more countries turn the corner and see the viability of crowd funding for investment.

We will be following the testimony carefully, and will post updates as we hear them this week. Stay tuned!

Update!

The video from the congressional hearing on "The Future of Capital Formation", which affects crowdfunding for social enterprises, is right here.