By David Harris Tech Editor- Boston Business Journal, U.S. Rep. Patrick McHenry, Republican of North Carolina, was in Boston to get feedback from those who would be affected by a bill that aims to fix a piece of legislation regarding equity-based crowdfunding. He recently stopped by the Boston Business Journal’s office to talk about that topic. Equity-based crowdfunding gives a business the ability to raise funds from the general public with those members of the public getting a share of that business. Passed two years age as part of the JOBS Act of 2012, equity crowdfunding hasn’t happened because of a long list of rules proposed by the U.S. Securities and Exchange Commission. McHenry and others, including U.S. Rep. Carolyn Maloney of New York, are working to fix the legislation, which McHenry and others say was “botched” by a Senate amendment.
In the venture community, McHenry’s efforts to fix the law have been praised.
“We applaud Rep. McHenry’s efforts to help crowdfunding in America achieve its original promise, as intended by the President and both houses of Congress,” said C.A. Webb, executive director of the New England Venture Capital Association. “This bill attempts to break the administrative log-jam that has kept entrepreneurs from being able to take advantage of equity crowdfunding now more than two years after the original bill’s passage.”