Title: Improving Crowdfunding Opportunities Act
Policy area: Finance and Financial Sector

Summary:
Improving Crowdfunding Opportunities Act
This bill reduces regulations applicable to crowdfunding securities and portals. Crowdfunding is used to raise capital through a large number of individuals investing potentially small amounts of money.
The bill exempts certain securities issued under crowdfunding regulations from state regulation of secondary transactions. It also exempts crowdfunding portals from certain anti-money laundering reporting and recordkeeping requirements. Finally, crowdfunding portals are exempted from liability for material misstatements or omissions unless the portal knowingly makes certain untrue statements or engages in fraud or deceit.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3967 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 3967

  To amend the Securities Act of 1933 to preempt State securities law 
   requiring registration for secondary transactions, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 30, 2022

   Mr. Moran introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the Securities Act of 1933 to preempt State securities law 
   requiring registration for secondary transactions, 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 ``Improving Crowdfunding Opportunities 
Act''.

SEC. 2. CROWDFUNDING REVISIONS.

    (a) Exemption From State Regulation.--Section 18(b)(4)(A) of the 
Securities Act of 1933 (15 U.S.C. 77r(b)(4)(A)) is amended by striking 
``pursuant to section'' and all that follows through the semicolon at 
the end and inserting the following: ``pursuant to--
                            ``(i) section 13 or 15(d) of the Securities 
                        Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); 
                        or
                            ``(ii) section 4A(b) or any regulation 
                        issued under that section;''.
    (b) Liability for Material Misstatements and Omissions.--Section 
4A(c) of the Securities Act of 1933 (15 U.S.C. 77d-1(c)) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Liability of funding portals.--For the purposes of 
        this subsection, a funding portal, as that term is defined in 
        section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
        78c(a)), shall not be considered to be an issuer unless, in 
        connection with the offer or sale of a security, the funding 
        portal knowingly--
                    ``(A) makes any untrue statement of a material fact 
                or omits to state a material fact in order to make the 
                statements made, in light of the circumstances under 
                which they are made, not misleading; or
                    ``(B) engages in any act, practice, or course of 
                business which operates or would operate as a fraud or 
                deceit upon any person.''.
    (c) Applicability of Bank Secrecy Act Requirements.--
            (1) Securities act of 1933.--Section 4A(a) of the 
        Securities Act of 1933 (15 U.S.C. 77d-1(a)) is amended--
                    (A) in paragraph (11), by striking ``and'' at the 
                end;
                    (B) in paragraph (12), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(13) not be subject to the recordkeeping and reporting 
        requirements relating to monetary instruments under subchapter 
        II of chapter 53 of title 31, United States Code.''.
            (2) Title 31, united states code.--Section 5312 of title 
        31, United States Code, is amended by striking subsection (c) 
        and inserting the following:
    ``(c) Additional Clarification.--The term `financial institution' 
(as defined in subsection (a))--
            ``(1) includes any futures commission merchant, commodity 
        trading advisor, or commodity pool operator registered, or 
        required to register, under the Commodity Exchange Act (7 
        U.S.C. 1 et seq.); and
            ``(2) does not include a funding portal, as that term is 
        defined in section 3(a) of the Securities Exchange Act of 1934 
        (15 U.S.C. 78c(a)).''.
    (d) Provision of Impersonal Investment Advice and 
Recommendations.--Section 3(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c(a)) is amended--
            (1) by redesignating the second paragraph (80) (relating to 
        funding portals) as paragraph (81); and
            (2) in paragraph (81)(A), as so redesignated, by inserting 
        after ``recommendations'' the following: ``(other than by 
        providing impersonal investment advice by means of written 
        material, or an oral statement, that does not purport to meet 
        the objectives or needs of a specific individual or account)''.
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