S. 1791 (112th): Democratizing Access to Capital Act of 2011

Nov 02, 2011 (112th Congress, 2011–2013)
Died (Referred to Committee) in a previous session of Congress

This bill was introduced on November 2, 2011, in a previous session of Congress, but was not enacted.

Nov 02, 2011
Scott Brown
Senator from Massachusetts
Read Text »
Last Updated
Nov 02, 2011
10 pages
Related Bills
H.R. 2930 (Related)
Entrepreneur Access to Capital Act

Passed House
Last Action: Nov 03, 2011

Full Title

A bill to amend the securities laws to provide for registration exemptions for certain crowdfunded securities, and for other purposes.


No summaries available.

2 cosponsors (2R) (show)

Senate Banking, Housing, and Urban Affairs

The committee chair determines whether a bill will move past the committee stage.

Primary Source

THOMAS.gov (The Library of Congress)

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S. stands for Senate bill.

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The bill’s title was written by its sponsor.

GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

Democratizing Access to Capital Act of 2011 - Amends the Securities Act of 1933 to exempt from its prohibitions against use of interstate commerce and the mails for sale (or delivery after sale) of unregistered securities, including unregistered security-based swaps, any transactions involving the issuance of securities through a crowdfunding intermediary, whether or not the transaction involves a public offering, for which:
(1) the aggregate annual amount raised through the issue of the securities during any 12-month period by an incorporated entity formed under state law is $1 million or less, and
(2) individual investments in the securities are limited to a maximum aggregate annual amount of $1,000.
(Crowdfunding is a method of capital formation where groups of people pool money, typically composed of very small individual contributions, and often via internet platforms, to invest in a company or otherwise support an effort by others to accomplish a specific goal.)
Sets forth criteria for the crowdfunding exemption.
Amends the Securities Act of 1934 to exclude: (1) persons holding crowdfunded securities under this Act from application of the 500-to-750 shareholder "held of record" criterion for a class of equity security subject to mandatory registration, and (2) crowdfunding intermediaries from regulation under such Act as "brokers" or "dealers."
Amends the Securities Act of 1933 to preempt state law with respect to regulation of crowdfunded securities. Subjects crowdfunding intermediaries, however, to state authority to investigate and bring enforcement actions with respect to fraud, deceit, or unlawful conduct in connection with securities or securities transactions.
Limits authority to impose fees on crowdfunded securities to: (1) the securities commission of the issuer's state of organization, or (2) any state in which purchasers of 50% or greater of the aggregate amount of the issue are residents.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.

No summary available.

House Democratic Caucus Summary

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