Increasing Opportunities for Retail Investors Act
Bill: S.3916 | Sponsor: Sen. Rounds, Mike (R-SD)
Policy area: Finance and Financial Sector

Summary:
Increasing Opportunities for Retail Investors Act
This bill expands the exemptions from registration requirements applicable to companies offering or selling securities. In general, the Securities and Exchange Commission (SEC) prohibits the offering or selling of securities unless the offering is registered with the SEC or it qualifies for an exemption.
Specifically, the bill increases the annual offering limit applicable to the crowdfunding exemption from $1 million to $5 million. The bill also allows the SEC to increase through rulemaking the dollar threshold or limit applicable to other types of offerings, including offerings for small- and medium-sized companies.
Additionally, the bill increases the offering limit applicable to small securities offerings and provides for adjustments to this limit in line with inflation.

To permit the Securities and Exchange Commission to increase regulatory 
             exemption thresholds, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Increasing Opportunities for Retail 
Investors Act''.

SEC. 2. REGULATORY DOLLAR THRESHOLDS AND LIMITATIONS.

    Notwithstanding any other provision of law or regulation, the 
Securities and Exchange Commission, in order to reduce any regulatory 
obligation (or any restriction) on any entity, may, as the Commission 
determines appropriate, increase any dollar threshold or limitation by 
rule of the Commission, including any dollar threshold or limitation 
under--
            (1) section 230.251(a)(1) of title 17, Code of Federal 
        Regulations, or any successor regulation;
            (2) section 230.251(a)(2) of title 17, Code of Federal 
        Regulations, or any successor regulation;
            (3) section 230.504 of title 17, Code of Federal 
        Regulations, or any successor regulation;
            (4) section 227.100(a)(1) of title 17, Code of Federal 
        Regulations, or any successor regulation;
            (5) section 229.10(f) of title 17, Code of Federal 
        Regulations, or any successor regulation;
            (6) section 230.405 of title 17, Code of Federal 
        Regulations, or any successor regulation; or
            (7) section 240.12b-2 of title 17, Code of Federal 
        Regulations, or any successor regulation.

SEC. 3. JOBS ACT-RELATED EXEMPTION.

    Section 3(b) of the Securities Act of 1933 (15 U.S.C. 77c(b)) is 
amended--
            (1) in paragraph (2)(A), by striking ``$50,000,000'' and 
        inserting ``$75,000,000, adjusted for inflation by the 
        Commission every 2 years to the nearest $10,000 to reflect the 
        change in the Consumer Price Index for All Urban Consumers 
        published by the Bureau of Labor Statistics''; and
            (2) in paragraph (5)--
                    (A) in the first sentence, by striking ``such 
                amount as'' and inserting the following: ``such amount, 
                as adjusted for inflation under paragraph (2)(A), as''; 
                and
                    (B) in the second sentence, by striking ``such 
                amount'' and inserting the following: ``such amount, as 
                adjusted for inflation under paragraph (2)(A)''.

SEC. 4. CROWDFUNDING EXEMPTION.

            (1) Increase in limit of amount sold in reliance on the 
        crowdfunding exemption.--Section 4(a)(6)(A) of the Securities 
        Act of 1933 (15 U.S.C. 77d(a)(6)(A)) is amended by striking 
        ``$1,000,000'' and inserting ``$5,000,000''.
            (2) Clarification of transaction caps.--Section 4(a)(6)(B) 
        of the Securities Act of 1933 (15 U.S.C. 77d(a)(6)(B)) is 
        amended--
                    (A) in clause (i), by inserting ``the greater of'' 
                after ``5 percent of''; and
                    (B) in clause (ii), by inserting ``the greater of'' 
                after ``10 percent of''.
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