For too long, the elites in Washington have forced a top down bureaucratic regulatory regime onto the backs of American entrepreneurs. This elites-know-best approach has led to a corrupted system that protects favored incumbents and props up easier to control institutions. However, with the advent of modern peer-to-peer technology, we have an opportunity to return to America’s entrepreneurial roots.
Helping foster this new hyper-efficient economy is one of my highest priorities. Last Congress I authored a bill to change how the government defines Accredited Investors. The current definition only takes wealth into account. If you have enough money, you can participate in special investment opportunities nationwide. My bill would change the definition to also include professional sophistication as an alternative metric to attain Accredited Investor status. This legislation passed the House of Representatives last Congress with broad bipartisan support with a vote of 347-8 and the House Financial Services Committee with an overwhelming bi-partisan vote of 54-2. I will be re-introducing this language in the 115th Congress to provide access to these investment opportunities for individuals who meet the alternative metric.
Administrative regulators are terrified of these new economic opportunities. Technology is changing at such a rapid pace that innovations are completed uncontrollable – an anathema to those with vested interests in DC’s top-down regulatory structure. Blockchain will revolutionize how modern financial ownership is proven. Peer-to-peer lending could do to community banks what the internet did to travel agencies. This paradigm must be fostered, because it is the one major hope we have for future economic growth.
More on Financial Services
Yesterday my legislation HR 1585 Fair Investment Opportunities for Professional Experts Act passed unanimously through the House of Representatives. My legislation would expand the definition of “accredited investor” to include professional experts, bringing in a larger number of sophisticated investors into the marketplace. This legislation with a spread of original bipartisan co-sponsors shows that even in today’s political climate, we can get good legislation passed.
Congressman Schweikert sent a letter to the Office of the Comptroller of the Currency (OCC) regarding digital currencies and their underlying technologies. The Congressman has been an avid supporter of blockchain technology, the technology behind many cryptocurrencies and distributed ledgers, as sees this as the future of financial services. In the letter, the Congressman asks for clarification from the OCC on how it plans to regulate the future of this space.