Chief Deputy Whip Patrick McHenry (R, NC-10), Vice Chairman of the House Financial Services Committee released the following statement marking today's launch of investment crowdfunding portals:

“Five years after I first introduced legislation to legalize investment crowdfunding, today’s opening of portals is a long-overdue but historic step in our efforts to democratize finance and capital formation for all. Today marks a milestone in our efforts to realize the true promise of crowdfunding: allowing the American people to invest in small businesses and innovative ideas they believe in.
 
“But there is still more work to be done. The SEC’s nearly 700-page rule is overly complex and burdensome creating a credibility crisis for investment crowdfunding. If we actually want to see investment crowdfunding realize its full potential, Congress must act. As part of House Republican’s Innovation Initiative, I’ve introduced the Fix Crowdfunding Act which will fix the issue’s posed by the SEC’s rule by allowing investment crowdfunding to achieve its ultimate goal of helping small businesses across the country grow and succeed.”

BACKGROUND: 

Earlier this year, Chief Deputy Whip McHenry introduced H.R. 4855, the Fix Crowdfunding Act. Further information on that legislation can be found here. 

Financial Times - May 16, 'US crowdfunding launch faces fight over rules' 

The long-delayed introduction of crowdfunding in the US takes effect on Monday, amid warnings that the new market will be choked by regulation and an attempt by Republican lawmakers to relax the rules.
 
A law change more than four years ago to open up investment in private companies beyond wealthy “accredited” investors was heralded as a breakthrough to allow anyone to back the next generation of tech start-ups. But a protracted review by the Securities and Exchange Commission delayed the new market, as regulators struggled with how to prevent fraud and money-laundering.
 
“The SEC has really created a credibility crisis for crowdfunding,” said Patrick McHenry, the Republican vice-chairman of the House financial services committee, in an interview with the Financial Times. “It’s as if regulators don’t have trust and confidence that this marketplace can work. It seems like they have no trust that we can successfully invest in each other.” READ MORE