by Josh Gross
The AP is reporting that a bill before the Senate to repeal the Securities and Exchange Commission guidelines that prohibited investments of less than $100 has passed.
This bill would legalize the practice of crowfunding for investors, an increasingly popular way of raising money through the power of social networking online.
Though the bill has strong by bipartisan support, including support from President Barack Obama, there were a few critics.
From the AP:
The Senate's No. 2 Democrat, Dick Durbin of Illinois, said the bill would "allow companies to use billboards and cold calls to lure unsophisticated investors with the promise of making a quick buck investing in new companies."
"We are about to embark upon the most sweeping deregulatory effort and assault on investor protection in decades," Sen. Carl Levin, D-Mich., said.
Also from the AP article:
Democrats did manage to pass one amendment to increase investor protections, so the legislation will still require another House vote. The House passed the measure two weeks ago on a 390-23 vote. The Senate vote was 73-26, with all the "no" votes coming from Democrats.
House Majority Leader Eric Cantor, R-Va., said he would schedule a House vote next week "so we can get this bipartisan jobs bill to the president's desk for his signature without delay."
One crowdfunding site, earlyshares.com, has been wasting no time at all, waiting for the bill to pass, and has been actively promoting itself as the go-to crowdfunding site for investors the instant the bill does pass.
Watch for updates on the bill's progress.