Frustrating Day for Crowdfunding at the Senate
Today was a frustrating day for Crowdfunding. The Senate Banking Committee, one of the most powerful committees on Capitol Hill held a hearing called, ‘Spurring Job Growth Through Capital Formation While Protecting Investors.’ It should have been called, ‘Why We Need to Stop Americans From Investing $1,000 into their Community Entrepreneurs.’
Anyone attending today’s hearing could tell it was to listen to special interests and regulators talk about the risks inherent in investing under the current system and why we need to protect consumers. There was no discussion about protecting people from spending their $1,000 paycheck on a lottery ticket, gambling it on Red in Vegas, nor spending more than that on their credit cards and being locked into interest payments upwards of 36% on the balance. For some reason, the only area they feel we need to provide prudent consumer protection is when a person is making a decision where they want to invest their money. Why? Because the expectation is different. Yes, we expect to win the lottery. Oh wait, no we don’t.
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