On May 1st, the House Financial Services Committee will hold a hearing (see:  http://financialservices.house.gov/calendar/eventsingle.aspx?EventID=377434) on various proposed bills related to the JOBS Act.  One of the bills addresses the crowdfunding framework and would have the effect of striking Title III of the JOBS Act and reverting to the House version of the crowdfunding title in most respects.  Another bill addresses certain issues raised by the SEC’s proposed amendment to Regulation D, Form D and Rule 156 and has as its aim encouraging use of the ability to use general solicitation in connection with certain Rule 506.  Perhaps most significant, a bill titled the Startup Capital Modernization Act of 2014, would address state preemption in Regulation A+ offerings.  State preemption continues to raise significant controversy.  The bill makes clear that Congress intended that Tier 2 Regulation A offerings not be subject to state review.  In addition, the bill addresses various other aspects of Regulation A+, such as the Exchange Act reporting threshold.  The same bill would codify the Section 4-1/2 exemption for resales of restricted securities.

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