H.R.3422 — Promoting Opportunities for Non-Traditional Capital Formation Act
House Roll Call
H.R.3422
| Bill | H.R.3422 — Promoting Opportunities for Non-Traditional Capital Formation Act |
|---|---|
| Vote question | On Motion to Suspend the Rules and Pass, as Amended |
| Vote type | 2/3 Yea-And-Nay |
| Result | Passed |
| Totals | Yea 321 / Nay 87 / Present 0 / Not Voting 23 |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 122 | 87 | 0 | 10 |
| D | 199 | 0 | 0 | 13 |
| I | 0 | 0 | 0 | 0 |
Research Brief
On Motion to Suspend the Rules and Pass, as Amended
Bill Analysis
Bill Summary: HR 3422 - Promoting Opportunities for Non-Traditional Capital Formation Act
The Promoting Opportunities for Non-Traditional Capital Formation Act (HR 3422) aims to enhance access to capital for small businesses and startups by facilitating alternative funding mechanisms beyond traditional avenues like bank loans and venture capital. The bill seeks to amend certain provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 to promote innovative financing options, including crowdfunding and other non-traditional capital sources.
Key Provisions:
- Regulatory Adjustments: The bill proposes to streamline regulatory requirements for small businesses seeking to raise capital through non-traditional means, thereby reducing compliance costs and barriers to entry.
- Crowdfunding Enhancements: HR 3422 aims to increase the maximum amount that can be raised through crowdfunding platforms, thereby allowing small businesses to access larger pools of potential investors.
- Investor Protections: The legislation includes provisions to ensure that investor protections remain intact while promoting flexibility in capital formation, including disclosures and reporting requirements tailored for non-traditional offerings.
Funding and Authorities: While the bill does not allocate specific funding, it empowers the Securities and Exchange Commission (SEC) to implement the proposed regulatory changes and oversee compliance with new capital formation mechanisms.
Affected Programs and Agencies: The primary agency impacted by this legislation is the SEC, which will be responsible for enforcing the new regulations and ensuring investor protection in the context of increased capital formation opportunities.
Beneficiaries: Small businesses, startups, and entrepreneurs seeking alternative funding sources will benefit from the reduced regulatory burden and expanded access to capital. Additionally, individual investors may gain new opportunities to invest in emerging businesses.
Timeline: Following its introduction, HR 3422 was received in the Senate, read twice, and referred to the Committee on Banking, Housing, and Urban Affairs for further consideration. The bill’s progress will depend on the committee’s review and subsequent actions in the legislative process.
Yea (321)
K
Ken Calvert
J
Jason Crow
L
Lloyd Doggett
J
John Garamendi
J
John Mannion
L
Lucy McBath
L
Lisa McClain
J
John Rutherford
D
David Schweikert
P
Pete Sessions
E
Eric Swalwell
R
Rashida Tlaib
N
Nydia Velázquez
D
Debbie Wasserman Schultz
Nay (87)
S
Scott Franklin
M
Mark Green
Not Voting (23)
