Michael Bennet: “I wish to discuss our bipartisan efforts to pass a crowdfunding amendment that provides needed flexibility but also…”

“I wish to discuss our bipartisan efforts to pass a crowdfunding amendment that provides needed flexibility but also ensures that crowdfunding has sufficient oversight and investor protections. I was proud to work with Senators Merkley and Brown in crafting this bipartisan proposal. The Senate passed our amendment by a 64 to 35 margin. The House of Representatives subsequently passed our language when it considered the JOBS legislation earlier this week. As the Securities and Exchange Commission works to implement this new law, it is my hope that it will recognize that the funding portal registration process is meant to be more streamlined and less burdensome than traditional broker-dealer registration. Given the size of the investments that are likely to occur in crowdfunding, the SEC should work to provide an appropriate level of oversight without making it cost-prohibitive to become a funding portal. Funding portals should be allowed to organize and sort information based on certain criteria. This will make it easier for individuals to find the types of companies in which they can potentially invest. This type of capability--commonly referred to as curation--should not constitute investment advice or recommendations, which the law otherwise prohibits. Similarly, funding portals should be allowed to engage in due diligence services. This would include providing templates and forms, which will enable issuers to comply with the underlying statute.…”