Legis Daily

Crowdfunding Amendments Act

USA116th CongressHR-4860| House 
| Updated: 10/29/2019
Patrick T. McHenry

Patrick T. McHenry

Republican Representative

North Carolina

Cosponsors (1)
Maxine Waters (Democratic)

Financial Services Committee, Banking, Housing, and Urban Affairs Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
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.

Bill Text Versions

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Timeline
Oct 28, 2019
Introduced in House
Oct 28, 2019
Referred to the House Committee on Financial Services.
Oct 28, 2019
Mr. Scott, David moved to suspend the rules and pass the bill, as amended.
Oct 28, 2019
Considered under suspension of the rules. (consideration: CR H8493-8494)
Oct 28, 2019
DEBATE - The House proceeded with forty minutes of debate on H.R. 4860.
Oct 28, 2019
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)
Oct 28, 2019
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8493)
Oct 28, 2019
Motion to reconsider laid on the table Agreed to without objection.
Oct 29, 2019
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  • October 28, 2019
    Introduced in House


  • October 28, 2019
    Referred to the House Committee on Financial Services.


  • October 28, 2019
    Mr. Scott, David moved to suspend the rules and pass the bill, as amended.


  • October 28, 2019
    Considered under suspension of the rules. (consideration: CR H8493-8494)


  • October 28, 2019
    DEBATE - The House proceeded with forty minutes of debate on H.R. 4860.


  • October 28, 2019
    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)


  • October 28, 2019
    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8493)


  • October 28, 2019
    Motion to reconsider laid on the table Agreed to without objection.


  • October 29, 2019
    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Finance and Financial Sector

Bank accounts, deposits, capitalBanking and financial institutions regulationFinancial services and investmentsLicensing and registrationsSecurities

Crowdfunding Amendments Act

USA116th CongressHR-4860| House 
| Updated: 10/29/2019
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.

Bill Text Versions

View Text
2 versions available

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Oct 28, 2019
Introduced in House
Oct 28, 2019
Referred to the House Committee on Financial Services.
Oct 28, 2019
Mr. Scott, David moved to suspend the rules and pass the bill, as amended.
Oct 28, 2019
Considered under suspension of the rules. (consideration: CR H8493-8494)
Oct 28, 2019
DEBATE - The House proceeded with forty minutes of debate on H.R. 4860.
Oct 28, 2019
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)
Oct 28, 2019
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8493)
Oct 28, 2019
Motion to reconsider laid on the table Agreed to without objection.
Oct 29, 2019
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  • October 28, 2019
    Introduced in House


  • October 28, 2019
    Referred to the House Committee on Financial Services.


  • October 28, 2019
    Mr. Scott, David moved to suspend the rules and pass the bill, as amended.


  • October 28, 2019
    Considered under suspension of the rules. (consideration: CR H8493-8494)


  • October 28, 2019
    DEBATE - The House proceeded with forty minutes of debate on H.R. 4860.


  • October 28, 2019
    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)


  • October 28, 2019
    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8493)


  • October 28, 2019
    Motion to reconsider laid on the table Agreed to without objection.


  • October 29, 2019
    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Patrick T. McHenry

Patrick T. McHenry

Republican Representative

North Carolina

Cosponsors (1)
Maxine Waters (Democratic)

Financial Services Committee, Banking, Housing, and Urban Affairs Committee

Finance and Financial Sector

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Bank accounts, deposits, capitalBanking and financial institutions regulationFinancial services and investmentsLicensing and registrationsSecurities