The Crowdfunding Professional Association (CfPA) has issued a Policy Platform containing eighteen recommendations for the investment crowdfunding industry. The CfPA believes the recommendations will help to fuel the growth of online capital formation using the Reg CF securities exemption.
Brian Christie, the 2024 President of the CfPA, said the adoption of the platform’s recommendations by “industry participants, regulators, and lawmakers will greatly advance the crowdfunding industry and have a profoundly positive impact on the funding landscape for American businesses, the environment for U.S. entrepreneurs, and wealth-building opportunities for individual investors.”
CfPA 2024 Vice President Jenny Kassan added that the passage of the JOBS Act of 2012 was a historic moment in the US.
“Twelve years later, the law has proven to be a great tool for increasing access to capital, but some of the provisions of the regulations create barriers for entrepreneurs that come from less privileged backgrounds. I hope that we can continue to make improvements so that this law can reach its full potential as a tool for community wealth building and economic development.”
The recommendations include an annual Federal tax credit of up to $1,000 for any individual (up to $2,000 for married couples filing jointly) for investments in one or more companies raising money through a Reg CF offering. Another recommendation is to boost the funding cap of Reg CF from the current $5 million to $20 million. At the same time, Reg A+ – another crowdfunding exemption – should increase from $75 million to $150 million.
The entire list of policy recommendations is available here.
