It was the 19th century German leader Otto von Bismarck who said, “Laws are like sausages. It’s better not to see them being made.” Despite the warning I have been paying attention to the Crowdfunding bill that made its way through Congress these past few months.
It started as H.R. 2930. This was a relatively simple bill that had just three main provisions and could be detailed on a single page. This bill had broad bipartisan and White House support. But like most things in Washington, it was not that simple.
This week President Obama will sign H.R. 3606 Jumpstart Our Business Startups (JOBS) Act into law. This act is a combination of several bills and contains a multitude of provisions relating to business financing. Section III of the law is all about crowdfunding. For the first time the United States will have a law on the books that acknowledges this new kind of business financing. And let’s give credit to Congress for agreeing on something. This bill passed the Senate with a vote of 73 to 26 and passed the House last week with a 380 to 41 majority. Clearly this was a popular bill. [Read more…]