At the Crowdfunding Professional Association (CfPA), we are proud to represent the voice of the regulated investment crowdfunding industry—a sector that has become a powerful engine for innovation, entrepreneurship, and inclusive economic growth across the United States.
In response to the House Financial Services Committee’s recent request for feedback on capital formation, we submitted a comprehensive letter outlining key reforms urgently needed to modernize Regulation Crowdfunding (Reg CF) and related exemptions. These reforms are critical to ensure that crowdfunding continues to thrive as a competitive, accessible, and transformative force in U.S. capital markets.
Since Reg CF was introduced through the JOBS Act of 2012, it has grown from a bold experiment into a proven success:
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Over 8,500 securities offerings
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$2.2 billion raised from more than 2 million Americans
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$7.5 billion in economic impact
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Nearly 400,000 jobs created
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$80 billion in estimated market valuation
But our work is far from done.
The Challenges: Outdated Rules Are Holding Us Back
Despite its success, Reg CF remains hampered by regulatory hurdles that disproportionately burden small businesses, early-stage startups, and the very investors the law was designed to empower. Today’s framework imposes costs and complexity that make small-dollar raises impractical and limits the flexibility of entrepreneurs and intermediaries alike.
That’s why we’ve laid out a bold, pragmatic legislative agenda to expand access, reduce unnecessary burdens, and align Reg CF with how real businesses operate today.
Our Key Policy Priorities
1. Create a Two-Tier System for Small Raises
We advocate for a simplified framework for smaller capital raises (e.g. up to $350,000), with streamlined disclosures, reduced financial reporting requirements, and a user-friendly process that doesn’t require legal or accounting teams to navigate.
2. Ease Financial Reporting for Early-Stage Companies
We’re pushing to exempt companies with less than six months of operating history from costly financial statement reviews, and to allow the use of cash-based or industry-standard accounting instead of GAAP.
3. Harmonize Investor Limits and Advertising Rules with Reg A
Investor caps under Reg CF are confusing and inconsistent with other exemptions. We support aligning limits and communications rules with the simpler and more flexible Regulation A framework.
4. Allow Investment Funds to Use Reg CF
Everyday Americans should be able to access diversified investment opportunities through small community or sector-specific funds. We propose new exemptions to enable these vehicles to raise capital via Reg CF.
5. Raise the Reg CF and Reg A Caps
To meet today’s capital needs, we support raising the Reg CF limit from $5M to $10M—and eventually $20M—and increasing the Reg A Tier 2 cap from $75M to $150M, with regular inflation adjustments.
Why It Matters
These reforms aren’t just about technical fixes. They’re about unlocking capital for underserved entrepreneurs, expanding investment opportunities for everyday Americans, and keeping the U.S. at the forefront of financial innovation.
Without change, we risk ceding leadership to foreign markets with more flexible and modern regulatory environments. We must act now to support the small businesses, job creators, and community leaders who are building the future.
Read the full letter submitted to the Committee.
Join CfPA—Be Part of the Movement
The CfPA is leading the charge to modernize investment crowdfunding—but we can’t do it alone.
By becoming a member of the CfPA, you join a powerful coalition of entrepreneurs, platforms, investors, legal experts, and community champions working together to shape policy, educate the public, and strengthen the ecosystem.
👉 Join us today to help ensure that U.S. crowdfunding laws reflect the realities of today’s economy—and unlock the potential of tomorrow’s innovators.
đź“Ť Learn more and sign up to join our advocacy efforts.
Together, we can build a more inclusive, dynamic, and equitable capital formation landscape for all.
#regulatedinvestmentcrowdfunding
@Brian Christie @Jenny Kassan @Scott McIntyre @Brian Belley @Devin Thorpe @Jason Fishman
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