Reps. Emmer and Moore Applaud SEC’s Updated Intrastate Crowdfunding Rules
Washington, D.C. – Yesterday, the Securities and Exchange Commission (SEC) finalized their Intrastate Crowdfunding rules that modernized important regulations which will help entrepreneurs create jobs, launch startups, and grow existing businesses.
Earlier this month Congressman Emmer (R-MN) and Congresswoman Moore (D-WI), along with 13 other members of Congress, led a bipartisan letter to the SEC suggesting they finalize their proposed intrastate crowdfunding rules, with only modest changes. Yesterday, the SEC voted unanimously to enact these rules incorporating some of this letter's suggested changes.
“Currently the rate of startup formation is half of what it was 40 years ago and business lending is still lower than it was prior to the economic crisis,” said Emmer. “I’m pleased to see the SEC is working with Congress to update antiquated regulations that are stifling the ability of the entrepreneurs to access the capital they need to create the opportunities of tomorrow.”
"I applaud the SEC for their action which will translate into potentially more capital for our nation’s small business and entrepreneurs,” said Moore. "This welcomed rule will provide certainty for states across the country as they work with small and local businesses to promote intrastate crowdfunding while maintaining important investor protections."
The new rules grants entrepreneurs more flexibility to solicit investors through online mediums and increases the amount of capital they can raise through crowdfunding. The result will be more resources for our businessmen and woman to create the products and services consumers desire and new job opportunities for Americans of all walks of life.
Congressman Tom Emmer (MN-06) and Congresswoman Gwen Moore (WI-04) are members of the House Financial Services Committee.
Click here to read the October 7, 2016 letter to the SEC.