The JOBS Act: McHenry's Crowdfunding Bill - a Do-Over

William Carleton, Contributing Editor, VCExperts

It's no secret that I think Congress failed non-accredited investors when it comes to equity crowdfunding.

While Title II of the JOBS Act will in fact make equity crowdfunding a reality for accredited investors (it is already here), non-accredited investors have been thrown into the limbo that is Title III of the JOBS Act.

Nor am I impressed or sympathetic with Rep. Patrick McHenry's expressions of frustration in Congressional hearings since the JOBS Act was passed. He wasn't fuming when House leadership decided to abandon his equity crowdfunding bill - one that achieved wide bipartisan support and White House endorsement - in favor of the cynical Senate version of equity crowdfunding (the only title in the new law that not in the form as delivered from the House to the Senate) that became part of the final JOBS Act.

So I think Rep. McHenry and I should do something about it.

Have a do-over.

Pick up the original equity crowdfunding bill that passed the House, simplify it a bit, and add a few choice improvements from the Senate version (yes, there are two or three).

Here it is.

Two things inspired me to finally tackle this redrafting chore: (1) Ellie K's worry over lack of investor protection under Title III of the JOBS Act; and (2) a point Jonny Sandlund made, to the effect of, put on investors the responsibility of policing their own compliance with investment caps (that is not what he said; that is what I heard).

I'll try to follow up, over a post or two, to summarize what it is about the do-over that serves both purposes - protecting investors and protecting entrepreneurs.

Photo: TheGiantVermin/Flickr.

William Carleton

Bill is a member of McNaul Ebel Nawrot & Helgren PLLC, a Seattle law firm. He blogs every day at