NASAA Intensifies Access to Capital Debate

Access to Capital | Feb 5, 2024

Unsplash Lennon Cheng Opposition - NASAA Intensifies Access to Capital DebateUnsplash Lennon Cheng Opposition - NASAA Intensifies Access to Capital Debate Image: Unsplash/Lennon Cheng

NASAA Opposes Expanding Access to Capital Act, Citing Investor Protection Concerns; Industry Leaders Disagree

In a recent letter, the North American Securities Administrators Association (NASAA) has voiced strong opposition to the Expanding Access to Capital Act (H.R. 2799), a piece of legislation aimed at enhancing financing access for small firms and entrepreneurs. This opposition is met with concern from private capital market leaders including investment crowdfunding platform operators, who argue that the Act could democratize capital access for everyday Americans and stimulate economic growth.

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  • Sponsored by Congressman Patrick McHenry, H.R. 2799 seeks to improve small firms’ and entrepreneurs’ access to financing and broaden investment opportunities for smaller investors.
  • The Act includes provisions for a “micro-offering exemption” allowing securities offerings of $250,000 or less, among other measures to streamline capital formation and investment processes.
  • NASAA criticizes multiple titles within H.R. 2799, particularly those facilitating private placement brokers and finders, creating micro-offering exemptions, limiting liability for funding portals, and easing trading of private securities off-exchange.  NASAA’s opposition may stem from fears of reduced state authority in securities regulation, continuing a history of resistance against federal measures perceived as limiting state powers.

Industry Reaction

Rebecca Kacaba, CEO of DealMaker, criticizes NASAA’s opposition, highlighting the Act’s potential to expand investment opportunities and drive job creation and economic opportunity, reflecting the broader dialogue on how best to support small businesses and investors in an evolving economic landscape.

NASAA’s opposition to HR 2799 and the Improving Crowdfunding Opportunities Act is concerning. The act serves to expand investment opportunities for everyday Americans. NASAA’s focus appears to be on state rules, rather than the identification of inadequate investor protections for Americans. As the SEC has noted, large investors have a limited focus on smaller companies, but HR 2799 provides [an improved] pathway for smaller investors to finance these businesses. This, in turn, drives job creation and economic opportunity. We continue to support the democratization of access to capital.”

As this debate continues, the perspectives of both investor protection advocates and proponents of democratized capital access will need to balance both safety and growth in the financial markets.

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Background:  The “Improving Crowdfunding Opportunities Act” represents a significant effort to refine and enhance the crowdfunding ecosystem in the United States. By reducing regulatory burdens, clarifying the roles and liabilities of funding portals, and expanding the opportunities for both issuers and investors, the Act aims to make crowdfunding a more attractive and viable option for raising capital. These changes could lead to increased innovation, support for small businesses, and broader investment opportunities for the general public, contributing to economic growth and the democratization of investment.


The debate over H.R. 2799 underscores a critical tension between state-level investor protection efforts and the push for federal legislation to facilitate broader access to capital and investment opportunities. The outcome of this legislative process could significantly impact capital formation, investment opportunities, and economic growth, making it a matter of keen interest for all stakeholders in the financial and entrepreneurial ecosystems.

NCFA Jan 2018 resize - NASAA Intensifies Access to Capital Debate

NCFA Jan 2018 resize - NASAA Intensifies Access to Capital DebateThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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