Bill > HR2590

This bill, the Unlocking Capital for Small Businesses Act of 2023, aims to create a safe harbor for private placement brokers and finders, which are individuals who help connect issuers of securities with buyers, without being subject to the full registration requirements of a broker-dealer. The bill directs the Securities and Exchange Commission (SEC) to promulgate regulations that are no more stringent than those imposed on funding portals for private placement brokers, and to allow private placement brokers to become members of national securities associations with reduced membership requirements. The bill also defines finders as individuals who receive limited transaction-based compensation and are exempt from broker-dealer registration requirements. Additionally, the bill provides that contracts with registered private placement brokers and finders are valid, and it limits the ability of states to impose greater requirements on private placement brokers and finders than what is specified in the bill.

Business and Industry

https://www.congress.gov/bill/118th-congress/house-bill/2590/all-info