Us Congress 2023-2024 Regular Session

Us Congress House Bill HB2607 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	118THCONGRESS
3	3	1
4	4	STSESSION H. R. 2607
5	5	To amend the Securities Act of 1933 to preempt State securities law requiring
6	6	registration for secondary transactions, and for other purposes.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	APRIL13, 2023
9	9	Mr. M
10	10	CHENRYintroduced the following bill; which was referred to the
11	11	Committee on Financial Services
12	12	A BILL
13	13	To amend the Securities Act of 1933 to preempt State
14	14	securities law requiring registration for secondary trans-
15	15	actions, and for other purposes.
16	16	Be it enacted by the Senate and House of Representa-1
17	17	tives of the United States of America in Congress assembled, 2
18	18	SECTION 1. SHORT TITLE. 3
19	19	This Act may be cited as the ‘‘Improving 4
20	20	Crowdfunding Opportunities Act’’. 5
21	21	SEC. 2. CROWDFUNDING REVISIONS. 6
22	22	(a) E
23	23	XEMPTIONFROMSTATEREGULATION.—Sec-7
24	24	tion 18(b)(4)(A) of the Securities Act of 1933 (15 U.S.C. 8
25	25	77r(b)(4)(A)) is amended by striking ‘‘pursuant to sec-9
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28	28	•HR 2607 IH
29	29	tion’’ and all that follows through the semicolon at the 1
30	30	end and inserting the following: ‘‘pursuant to— 2
31	31	‘‘(i) section 13 or 15(d) of the Securi-3
32	32	ties Exchange Act of 1934 (15 U.S.C. 4
33	33	78m, 78o(d)); or 5
34	34	‘‘(ii) section 4A(b) or any regulation 6
35	35	issued under that section;’’. 7
36	36	(b) L
37	37	IABILITY FORMATERIALMISSTATEMENTS AND 8
38	38	O
39	39	MISSIONS.—Section 4A(c) of the Securities Act of 1933 9
40	40	(15 U.S.C. 77d–1(c)) is amended— 10
41	41	(1) by redesignating paragraph (3) as para-11
42	42	graph (4); and 12
43	43	(2) by inserting after paragraph (2) the fol-13
44	44	lowing: 14
45	45	‘‘(3) L
46	46	IABILITY OF FUNDING PORTALS .—For 15
47	47	the purposes of this subsection, a funding portal, as 16
48	48	that term is defined in section 3(a) of the Securities 17
49	49	Exchange Act of 1934 (15 U.S.C. 78c(a)), shall not 18
50	50	be considered to be an issuer unless, in connection 19
51	51	with the offer or sale of a security, the funding por-20
52	52	tal knowingly— 21
53	53	‘‘(A) makes any untrue statement of a ma-22
54	54	terial fact or omits to state a material fact in 23
55	55	order to make the statements made, in light of 24
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58	58	•HR 2607 IH
59	59	the circumstances under which they are made, 1
60	60	not misleading; or 2
61	61	‘‘(B) engages in any act, practice, or 3
62	62	course of business which operates or would op-4
63	63	erate as a fraud or deceit upon any person.’’. 5
64	64	(c) A
65	65	PPLICABILITY OF BANKSECRECYACTRE-6
66	66	QUIREMENTS.— 7
67	67	(1) S
68	68	ECURITIES ACT OF 1933.—Section 4A(a) of 8
69	69	the Securities Act of 1933 (15 U.S.C. 77d–1(a)) is 9
70	70	amended— 10
71	71	(A) in paragraph (11), by striking ‘‘and’’ 11
72	72	at the end; 12
73	73	(B) in paragraph (12), by striking the pe-13
74	74	riod at the end and inserting ‘‘; and’’; and 14
75	75	(C) by adding at the end the following: 15
76	76	‘‘(13) not be subject to the recordkeeping and 16
77	77	reporting requirements relating to monetary instru-17
78	78	ments under subchapter II of chapter 53 of title 31, 18
79	79	United States Code.’’. 19
80	80	(2) T
81	81	ITLE 31, UNITED STATES CODE .—Section 20
82	82	5312 of title 31, United States Code, is amended by 21
83	83	striking subsection (c) and inserting the following: 22
84	84	‘‘(c) A
85	85	DDITIONALCLARIFICATION.—The term ‘finan-23
86	86	cial institution’ (as defined in subsection (a))— 24
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89	89	•HR 2607 IH
90	90	‘‘(1) includes any futures commission merchant, 1
91	91	commodity trading advisor, or commodity pool oper-2
92	92	ator registered, or required to register, under the 3
93	93	Commodity Exchange Act (7 U.S.C. 1 et seq.); and 4
94	94	‘‘(2) does not include a funding portal, as that 5
95	95	term is defined in section 3(a) of the Securities Ex-6
96	96	change Act of 1934 (15 U.S.C. 78c(a)).’’. 7
97	97	(d) P
98	98	ROVISION OFIMPERSONALINVESTMENTAD-8
99	99	VICE ANDRECOMMENDATIONS .—Section 3(a) of the Secu-9
100	100	rities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amend-10
101	101	ed— 11
102	102	(1) by redesignating the second paragraph (80) 12
103	103	(relating to funding portals) as paragraph (81); and 13
104	104	(2) in paragraph (81)(A), as so redesignated, 14
105	105	by inserting after ‘‘recommendations’’ the following: 15
106	106	‘‘(other than by providing impersonal investment ad-16
107	107	vice by means of written material, or an oral state-17
108	108	ment, that does not purport to meet the objectives 18
109	109	or needs of a specific individual or account)’’. 19
110	110	(e) T
111	111	ARGETAMOUNTS OFCERTAINEXEMPTEDOF-20
112	112	FERINGS.—The Securities and Exchange Commission 21
113	113	shall amend paragraph (t)(1) of section 227.201 of title 22
114	114	17, Code of Federal Regulations so that such paragraph 23
115	115	applies with respect to an issuer offering or selling securi-24
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118	118	•HR 2607 IH
119	119	ties in reliance on section 4(a)(6) of the Securities Act 1
120	120	of 1933 (15 U.S.C. 77d(a)(6)) if— 2
121	121	(1) the offerings of such issuer, together with 3
122	122	all other amounts sold under such section 4(a)(6) 4
123	123	within the preceding 12-month period, have, in the 5
124	124	aggregate, a target amount of more than $124,000 6
125	125	but not more than $250,000; 7
126	126	(2) the financial statements of such issuer that 8
127	127	have either been reviewed or audited by a public ac-9
128	128	countant that is independent of the issuer are un-10
129	129	available at the time of filing; and 11
130	130	(3) such issuer provides a statement that finan-12
131	131	cial information certified by the principal executive 13
132	132	officer of the issuer has been provided instead of fi-14
133	133	nancial statements reviewed by a public accountant 15
134	134	that is independent of the issuer. 16
135	135	(f) E
136	136	XEMPTIONAVAILABLE TOINVESTMENTCOMPA-17
137	137	NIES.—Section 4A(f) of the Securities Act of 1933 (15 18
138	138	U.S.C. 77d–1(f)) is amended— 19
139	139	(1) in paragraph (2), by inserting ‘‘or’’ after 20
140	140	the semicolon; 21
141	141	(2) by striking paragraph (3); and 22
142	142	(3) by redesignating paragraph (4) as para-23
143	143	graph (3). 24
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146	146	•HR 2607 IH
147	147	(g) NON-ACCREDITEDINVESTORREQUIREMENTS.— 1
148	148	Section 4(a)(6) of the Securities Act of 1933 (15 U.S.C. 2
149	149	77d(a)(6)) is amended— 3
150	150	(1) in subparagraph (A), by striking 4
151	151	‘‘$1,000,000’’ and inserting ‘‘$10,000,000’’; and 5
152	152	(2) in subparagraph (B), by striking ‘‘does not 6
153	153	exceed’’ and all that follows through ‘‘more than 7
154	154	$100,000’’ and inserting ‘‘does not exceed 10 per-8
155	155	cent of the annual income or net worth of such in-9
156	156	vestor’’. 10
157	157	(h) T
158	158	ECHNICALCORRECTION.—The Securities Act of 11
159	159	1933 (15 U.S.C. 77a et seq.) is amended— 12
160	160	(1) by striking the term ‘‘section 4(6)’’ each 13
161	161	place such term appears and inserting ‘‘section 14
162	162	4(a)(6)’’; and 15
163	163	(2) by striking the term ‘‘section 4(6)(B)’’ each 16
164	164	place such term appears and inserting ‘‘section 17
165	165	4(a)(6)(B)’’. 18
166	166	Æ
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