“They want to see retail investors have more access to more different kinds of deals.” – 02:44
Jenny Kassan, President of the Crowdfunding Professional Association, joins Remy Blaire to provide valuable insights into the organization’s role and its upcoming summit on regulated investment crowdfunding.
Jenny begins by exploring the CFPA’s policy advocacy agenda, particularly in light of the 2016 regulation crowdfunding law. Jenny explains that prior to this legislation, it was nearly impossible for everyday investors to participate in funding private companies. The law has since enabled individuals to raise money from a broader audience, including retail investors, and to advertise their offerings nationwide. Jenny emphasizes the importance of this shift and the potential for further improvements, especially with Regulation A+, which allows companies to raise up to $75 million.
As the conversation progresses, Remy inquires about the CFPA’s relationship with the SEC and legislators in Washington, D.C. Jenny shares that the CFPA has cultivated strong relationships with SEC commissioners and various lawmakers who are eager to enhance the crowdfunding space. They are advocating for increased access for retail investors, who currently have most of their investments tied to public markets, which consist of only about 4,000 companies. Jenny stresses the need for investors to have the right to diversify their portfolios.
The discussion also touches on the CFPA’s efforts to create a balanced and protective crowdfunding ecosystem. Jenny highlights the existing investor protections embedded in the law, affirming the CFPA’s commitment to safeguarding investors from fraud. However, she also advocates for the freedom of individuals to make informed investment decisions, provided they have access to accurate disclosures. Jenny notes that there is growing support for this balanced approach from various sectors of the federal government.