Streamline Reg A/CF, preempt blue sky, broaden or end accredited-investor limits
Absent fundamental reform, Mandate directs SEC to simplify Reg A and crowdfunding, preempt blue-sky for Reg A primary/secondary offerings, broaden or eliminate accredited-investor limits, allow self-certification for Rule 506, and create micro-offering exemptions.
Mandate
Mandate Ch. 27 (Financial Regulatory Agencies) — Entrepreneurial Capital Formation: simplify/streamline Regulation A and Regulation CF and preempt blue sky registration/qualification for all primary and secondary Regulation A offerings; democratize private offerings by broadening accredited-investor definition or eliminating the restriction; allow traditional self-certification of accredited status for all Regulation D Rule 506 offerings; exempt small micro-offerings from registration.
Undo plan
1) Keep accredited-investor income/net-worth screens or replace with sophistication tests—do not eliminate investor suitability wholesale.
2) Condition blue-sky preemption on enhanced SEC disclosure and state antifraud cooperation.
3) Retain third-party verification options for 506(c); limit self-certification where retail solicitation is broad.
4) Size micro-offering exemptions tightly with aggregate caps and bad-actor disqualifiers.
5) Verify: crowdfunding fraud rates; state enforcement referral volumes.