[Congressional Record Volume 170, Number 42 (Friday, March 8, 2024)]
[Extensions of Remarks]
[Page E228]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                EXPANDING ACCESS TO CAPITAL ACT OF 2023

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of Minnesota

                    in the house of representatives

                        Wednesday, March 6, 2024

  Ms. McCOLLUM. Mr. Chair, I rise in opposition to H.R. 2799, the 
Expanding Access to Capital Act. Mr. Chair, this bill does not in fact 
expand access to capital. It expands access to fraud.
  Historically, U.S. capital markets have been successful because of 
the transparency, accountability, and oversight required by 
regulations. Investors both here and abroad have confidence in the 
investments they make because they know companies are required to be 
transparent and the Securities and Exchange Commission (SEC) is 
obligated to perform oversight. However, large companies are now using 
exemptions designed for small businesses. This has resulted in an 
expansion of the private securities market, which is riskier than the 
public securities market because there are fewer and, in some cases, no 
disclosures required. H.R. 2799 would exacerbate these problems by 
allowing large companies to evade disclosure requirements and SEC 
oversight. The bill also reduces incentives for companies to go public 
through an initial public offering (IPO) which will deprive investors, 
including working families and retirees, of transparent investment 
opportunities.
  Everyday Americans invest their hard-earned money to save for their 
education, travel, buying a home, and retirement. H.R. 2799 threatens 
the existing regulations that protect everyday Americans from risky 
investments that would put their livelihoods in jeopardy. Under current 
regulation, financial professionals or companies are required to only 
sell private securities to investors who have access to reliable 
information, have a demonstrated ability to understand the risks, and 
have the financial wherewithal to absorb potentially severe investment 
losses. H.R. 2799 removes these safeguards, allowing financial 
middlemen to peddle risky private securities to unsuspecting, hard-
working Americans. H.R. 2799 sets everyday American investors up to 
fail.
  H.R. 2799 also includes anti-worker provisions that will harm gig-
workers like rideshare drivers, food delivery providers, and on-demand 
caregivers. The State of Minnesota has been working hard to prevent the 
misclassification of gig-workers workers as independent contractors and 
provide stronger protections for these workers. H.R. 2799 would preempt 
these efforts in Minnesota and around the country by prohibiting the 
classification of gig-workers as employees. This provision would cut 
off gig-workers' access to essential state-based rights and benefits 
like a minimum wage, unemployment insurance, overtime pay, health 
benefits, and workers compensation.
  Mr. Chair, H.R. 2799 eliminates crucial investor protections which 
would expose the investments of American families and seniors to 
financial fraud. I urge my colleagues to oppose the bill.

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