Embedded below is the prepared testimony provided by Seedrs CEO Jeff Lynn delivered to the House Subcommittee on Capital Markets and Government Sponsored Enterprises.
Lynn effectively calls retail crowdfunding, as legislated in Title III of the JOBS Act, dead on arrival:
He stated:
I have come before you today because I believe, based on the extensive experience I have gained in the equity crowdfunding space, that Title III as enacted is an unworkable law that will stifle equity crowdfunding in the United States before it ever begins.
…Unfortunately, it has been clear to many of us who are on the ground in this industry that the balance chosen was not a viable one, and that if equity crowdfunding is to have a chance in the United States, a substantial overhaul is needed.
Seedrs considered expanding into the US market, leveraging their platform and experience, but upon regulatory review they deemed the challenges to cumbersome to be successful.
Lynn declared yesterday he was testifying before the committee to show his support for draft legislation submitted by Congressman Patrick McHenry to address the issues as described in the current legislation.
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