Patrick McHenryChairman

Washington, November 2, 2020 -

Today, Republican leader of the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement in support of the Securities and Exchange Commission’s (SEC) finalization of a proposal to simplify and improve the exempt offering framework:

“Today’s action by the SEC will help small businesses, their employees, and Main Street investors—while maintaining important protections,” said Ranking Member McHenry. “To ensure a widespread economic recovery, we need to provide our small businesses with every opportunity to raise capital to keep and create jobs. We also need to give investors the opportunity to fund these small businesses and share in their success. I’m glad to see the SEC finalize these long-overdue improvements to the exempt offering framework and Regulation Crowdfunding to do just that.”

Background:

• In 2012, Ranking Member McHenry wrote the original bill to legalize investment-based crowdfunding, making it easier for businesses to raise capital, which was included in the JOBS Act he helped to create.
• In June, Ranking Member McHenry wrote a letter in support of the SEC’s efforts to help small businesses and expand investment opportunities for Main Street investors by simplifying the exempt offering framework, which has become too complex over the last several decades. Read the full letter here.
• In May, the Ranking Member called on Chairman Clayton to raise the limit and make permanent recent modifications to crowdfunding as well as harmonize exempt offerings.
• Last year, the House passed Ranking Member McHenry’s bipartisan Crowdfunding Amendments Act to ensure investment crowdfunding can best support American small businesses and entrepreneurs seeking to raise capital.