The JOBS Act: Maybe It Takes 2 Jobs Acts To Effectuate Crowdfunding?

William Carleton, Contributing Editor, VCExperts

Steve Reaser made me aware this morning of the following statement from Rep. Patrick McHenry of North Carolina:

"New crowdfunding legislation will pave the way for startups and entrepreneurs to grow their businesses and fuel job creation around the country. While the SEC has delayed implementation of crowdfunding rules at the federal level, I applaud North Carolina leaders such as Tom Murray for taking the initiative of offering crowdfunding across the state. From small craft breweries in Asheville to high-tech startups in RTP [Research Triangle Park], crowdfunding offers a new source of capital to entrepreneurs chasing the American Dream."

Tom Murray is Rep. Tom Murray, a North Carolina state legislator who, along with co-sponsors, introduced a crowdfunding bill in his state that I think gets things right and corrects the mistakes that were made by the US Senate when it gutted Rep. McHenry's successful (in the House) bi-partisan crowdfunding bill that had had the support of the White House.

Taking the Congressman's statement at face value, he seems to be saying that states might as well address the gap left by failure of the SEC to promulgate rules at the federal level. To my mind, the federal legislation is not something any rules can implement. I think that, at the federal level, Rep. McHenry might better push for a do-over.

But supporting state investment crowdfunding initiatives gets to the same place, and perhaps a better place.

William Carleton

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