Political Quotes

“Madam Chair, a key tenet of H.R. 2799 is to increase access to investment opportunities for everyday investors. Under the guise of investor protection, this amendment would arbitrarily limit the amount nonaccredited investors can invest in a private offering to 5 percent of an individual's net worth. In the Expanding Access to Capital Act, the investment cap for a single private offering is set at 10 percent of the investor's net assets or annual income, whichever is greater. Instead of using a number just pulled out of thin air, the 10 percent cap in the bill is rooted in precedent. There is a 10 percent cap for nonaccredited investors through offerings such as Regulation Crowdfunding and Reg A+. Why would we not go with the percentage cap that is already proven effective? Additionally, this amendment would arbitrarily cap aggregate investments across private offerings for nonaccredited investors to no more than 25 percent of their net worth. This essentially says to everyday investors that the government knows better than you how to invest your hard-earned dollars. As I previously said, and we heard from several witnesses at committee, wealth and income should not be a proxy for sophistication. Similarly, if we want to provide more Americans the opportunity to build wealth, we cannot keep them on the sidelines. Private offerings are often the most high-growth investment opportunities, yet they are largely reserved for high-net-worth investors.…”