Sherwood “Woodie” Neiss, Principal and co-founder of Crowdfund Capital Advisors (CCA), has sent a letter to Congress supporting HR 2799 or the Expanding Access to Capital Act – legislation that is designed to help entrepreneurs and small businesses while boosting the economy.
The letter has been addressed to leadership on both sides of the aisle in the US House of Representatives.
The letter from CCA follows a turpid letter by the North American Securities Administrators Association (NASAA), which opposes the legislation. Neiss was compelled to voice his support of the legislation that seeks to help entrepreneurs following the NASAA missive.
Neiss is one of the creators of the JOBS Act of 2012 – the legislation that legalized online capital formation or crowdfunding. CCA is a well-known group that provides data about crowdfunding, tracking its progress and enabling insight into its effectiveness.
In the Letter, Neiss urged Congress to pass HR 2799, describing it as a “commitment to America’s spirit of enterprise.” Neiss said the bill “delivers economic output, innovation, and jobs without inhibiting regulators from promoting responsible capital formation and protecting investors in their states.”
While there have been many groups and individuals opposing crowdfunding, fearing fraud, like NASAA, Neiss points out that “nearly eight years later, we can unequivocally state that those fears were unfounded.” And Neiss has the data to back up those claims including over 310,000 jobs created and an approximate $6.8 billion economic infusion for the country.
Neiss states:
“The passage of H.R. 2799 represents a pivotal step toward solidifying this growth trajectory and fortifying the crowdfunding ecosystem that has proven to be a bedrock for capital formation. This act is poised to enhance the framework for capital formation while upholding robust investor protections, thereby nurturing the public securities markets and safeguarding investors’ financial futures.”
And;
“As legislators, the choice before you is not merely a regulatory one; it is a choice that will shape the economic destiny of countless Americans. The act’s emphasis on economic output, innovation, and job creation aligns seamlessly with the ethos of promoting responsible capital formation without compromising on investor protection.”
We asked Neiss about the opposition to the legislation from NASAA that appears to undermine entrepreneurship and capital formation. Neiss had this to say;
“In my view, the NASAA’s recent communications to Congress represent a particularly insidious form of disinformation, characterized by a willful disregard for the current data and realities of Regulation Crowdfunding. Their approach, which selectively cites outdated figures and ignores the transformative impact of recent regulatory changes, does a disservice not only to the innovative platforms and entrepreneurs driving economic growth and creating jobs but also to the very principles of informed legislative debate. I find it imperative to counter such narratives with rigorous, data-driven analysis to ensure that policy decisions are grounded in the realities of today’s financial landscape, rather than the misconceptions of yesterday. My rebuttal to their letter is not just about setting the record straight; it’s about advocating for a more honest and evidence-based discourse that truly serves the interests of American businesses and investors.”
