The US Fix Crowdfunding Act has passed the House of Representatives along with the Supporting America’s Innovators Act of 2016, according to Dodd-Frank.com.
The Fix Crowdfunding Act, also known as H.R. 4855, enables the use of crowdfunding vehicles in relation to crowdfunding. The vehicles, following the act becoming law, will be able to make investments in an issuer subject to limitations.
The act also makes an exemption for the Exchange Act registration for crowdfunders if the issuer has a public flotation of less than $75m.
It passed the House of Representatives with a vote of 394 to 4. It has, at the time of writing, been received in the Senate and is widely expected to pass the upper house.
The act was sponsored by Patrick McHenry, the Republican Representative for North Carolina’s 10th congressional district.
The Supporting America’s Innovators Act of 2016, also known as H.R. 4854, makes venture capital funds with up to 250 investors exempt from the Investment Company Act. The funds must have no more than $10m in invested capital.
This Act passed the House with a vote of 388 to 9.