While there is plenty to sort through in the social spending legislation known as the Build Back Better bill it appears that the section effectively blocking private securities from being held in Investment Retirement Accounts (IRAs) has been pulled from the language as it stands now.
As was previously reported, a Congressional House committee had inserted language into the social spending bill that would have impacted private securities, such as securities issued under Reg D, Reg A+ and Reg CF. Each of these exemptions is utilized by online capital formation platforms that crowdfund securities.
Multiple organizations raised the alarm to these harmful, hamfisted provisions. While ostensibly targeting wealthy investors (think Peter Thiel) the legislation would have impacted a far broader range of investors – including smaller investors participating in private market offerings.
While the final language remains in legislative limbo and there is plenty of other items to review, for the moment this is a sliver of good news – at least for the investment crowdfunding industry.