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Bill116th CongressFiled Oct 28, 2019Finance and Financial Sector
H.R. 4860

Crowdfunding Amendments Act

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary introduced in house (Oct 28, 2019)

Crowdfunding Amendments Act

This bill allows a crowdfunding issuer to sell shares through a crowdfunding vehicle. (Crowdfunding is a method of capital formation in which groups of people pool money to invest in a company or to support an effort to accomplish a specific goal.)

A "crowdfunding vehicle" is defined as a company that

  • has purposes limited to acquiring, holding, and disposing only one class of crowdfunding securities issued by a single company;
  • receives no compensation for doing so; and
  • meets other specified requirements, including those related to reporting obligations and the use of investment advisers.

The bill provides for the registration of crowdfunding vehicle advisers.

The bill also revises the conditions upon which the Securities and Exchange Commission (SEC) shall exempt securities issued in crowdfunding transactions from registration requirements. Under current law, holders of crowdfunded shares do not count toward the shareholder threshold beyond which an issuer is required to register its securities with the SEC, provided that the issuer (1) is current in its annual reporting obligations, (2) retains the services of a registered transfer agent, and (3) has less than $25 million in assets. The bill maintains this exemption but alters the conditions upon which it applies. Specifically, holders of crowdfunded shares shall not count toward the shareholder threshold if the issuer has (1) a public float of less than $75 million, or (2) a public float of $0 and annual revenues of less than $50 million.

What just happenedOct 29, 2019

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Who’s behind it

Rep. McHenry, Patrick T. [R-NC-10](R-NC)Sponsor
1 cosponsor1 D
Read on Congress.gov
1cosponsors2committees10actions5subjects
  1. Oct 29, 2019IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

    Banking, Housing, and Urban Affairs Committee
  2. Oct 28, 2019FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  3. Oct 28, 2019FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8493)

  4. Oct 28, 2019Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H8493)

  5. Oct 28, 2019FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 4860.

  6. Oct 28, 2019FloorH30000

    Considered under suspension of the rules. (consideration: CR H8493-8494)

  7. Oct 28, 2019FloorH30300

    Mr. Scott, David moved to suspend the rules and pass the bill, as amended.

  8. Oct 28, 2019IntroReferralH11100

    Referred to the House Committee on Financial Services.

    Financial Services Committee
  9. Oct 28, 2019IntroReferralIntro-H

    Introduced in House

  10. Oct 28, 2019IntroReferral1000

    Introduced in House

Introduced in HouseOct 28, 2019

Crowdfunding Amendments Act

This bill allows a crowdfunding issuer to sell shares through a crowdfunding vehicle. (Crowdfunding is a method of capital formation in which groups of people pool money to invest in a company or to support an effort to accomplish a specific goal.)

A "crowdfunding vehicle" is defined as a company that

  • has purposes limited to acquiring, holding, and disposing only one class of crowdfunding securities issued by a single company;
  • receives no compensation for doing so; and
  • meets other specified requirements, including those related to reporting obligations and the use of investment advisers.

The bill provides for the registration of crowdfunding vehicle advisers.

The bill also revises the conditions upon which the Securities and Exchange Commission (SEC) shall exempt securities issued in crowdfunding transactions from registration requirements. Under current law, holders of crowdfunded shares do not count toward the shareholder threshold beyond which an issuer is required to register its securities with the SEC, provided that the issuer (1) is current in its annual reporting obligations, (2) retains the services of a registered transfer agent, and (3) has less than $25 million in assets. The bill maintains this exemption but alters the conditions upon which it applies. Specifically, holders of crowdfunded shares shall not count toward the shareholder threshold if the issuer has (1) a public float of less than $75 million, or (2) a public float of $0 and annual revenues of less than $50 million.

Passed HouseOct 28, 201953

Crowdfunding Amendments Act

This bill allows a crowdfunding issuer to sell shares through a crowdfunding vehicle. (Crowdfunding is a method of capital formation in which groups of people pool money to invest in a company or to support an effort to accomplish a specific goal.)

A "crowdfunding vehicle" is defined as a company that

  • has purposes limited to acquiring, holding, and disposing only one class of crowdfunding securities issued by a single company;
  • receives no compensation for doing so; and
  • meets other specified requirements, including those related to reporting obligations and the use of investment advisers.

The bill provides for the registration of crowdfunding vehicle advisers.

The bill also revises the conditions upon which the Securities and Exchange Commission (SEC) shall exempt securities issued in crowdfunding transactions from registration requirements. Under current law, holders of crowdfunded shares do not count toward the shareholder threshold beyond which an issuer is required to register its securities with the SEC, provided that the issuer (1) is current in its annual reporting obligations, (2) retains the services of a registered transfer agent, and (3) has less than $25 million in assets. The bill maintains this exemption but alters the conditions upon which it applies. Specifically, holders of crowdfunded shares shall not count toward the shareholder threshold if the issuer has (1) a public float of less than $75 million, or (2) a public float of $0 and annual revenues of less than $50 million.

Crowdfunding Amendments Act — Informed