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Congresswoman Joyce Beatty

Representing the 3rd District of Ohio

Congresswoman Beatty Leads Effort to Better Protect Mom and Pop Investors

Mar 16, 2018
Press Release

Congresswoman Beatty Leads Effort to Better Protect Mom and Pop Investors

Beatty-backed amendment would have strengthened investor protections and the SEC’s “bad actors” disqualification rules

WASHINGTON, D.C. – Yesterday, U.S. Congresswoman Joyce Beatty (OH-03) offered an amendment to the Regulation A+ Improvement Act, H.R 4263, that if adopted would have improved investor protections for main street investors and raised the standard of the Securities and Exchange Commission’s (SEC) “bad actors” disqualification rules. An archived recording of Beatty offering her amendment can be viewed on YouTube.    

The Regulation A+ offering threshold—the maximum amount of funds that certain companies can raise from more modest investors—is regulated by the SEC and, under law, is set at $50 million. However, H.R. 4263 would unilaterally increase the offering threshold to $75 million, even as the SEC is preparing to report to Congress whether or not they will increase the threshold next month. Unfortunately, this move comes at a time when only a handful of businesses have ever raised the maximum amount of $50 million, and the bill in its current form gives unscrupulous actors the opportunity to swindle even more Americans’ hard-earned money.

“There is zero data to suggest Congress needs to raise the offering threshold, and it seems prudent to wait to see what the SEC has to say before rushing to increase it,” Beatty said from the House floor. “My amendment would ensure the integrity of the Regulation A+ program and at the same time safeguard investors from those who have a history of defrauding stakeholders.”

Following formal debate, the U.S. House of Representatives, voted down Beatty’s amendment largely along party lines, passing H.R. 4263 without any substantive changes. The bill is now awaiting further consideration in the U.S. Senate.

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