Sec. 304. FUNDING PORTAL REGULATION
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## SEC. 304 FUNDING PORTAL REGULATION ###
(a)Exemption ####
(1)In general Section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c) is amended by adding at the end the following: > > ### “(h) Limited Exemption for Funding Portals > > > #### “(1) In general > > The Commission shall, by rule, exempt, conditionally or unconditionally, a registered funding portal from the requirement to register as a broker or dealer under section 15(a)(1), provided that such funding portal— > > > ##### “(A) > > remains subject to the examination, enforcement, and other rulemaking authority of the Commission; > > > ##### “(B) > > is a member of a national securities association registered under section 15A; and > > > ##### “(C) > > is subject to such other requirements under this title as the Commission determines appropriate under such rule. > > > #### “(2) National securities association membership > > For purposes of sections 15(b)(8) and 15A, the term ‘broker or dealer’ includes a funding portal and the term ‘registered broker or dealer’ includes a registered funding portal, except to the extent that the Commission, by rule, determines otherwise, provided that a national securities association shall only examine for and enforce against a registered funding portal rules of such national securities association written specifically for registered funding portals.” > . ####
(2)Rulemaking **[**[15 U.S.C. 78c note](/us/usc/t15/s78c)**]** The Commission shall issue a rule to carry out section 3(h) of the Securities Exchange Act of 1934 (15 U.S.C. 78c), as added by this subsection, not later than 270 days after the date of enactment of this Act. ###
(b)Definition Section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)) is amended by adding at the end the following: > > #### “(80) Funding portal > > The term ‘funding portal’ means any person acting as an intermediary in a transaction involving the offer or sale of securities for the account of others, solely pursuant to section 4(6) of the Securities Act of 1933 (15 U.S.C. 77d(6)), that does not— > > > ##### “(A) > > offer investment advice or recommendations; > > > ##### “(B) > > solicit purchases, sales, or offers to buy the securities offered or displayed on its website or portal; > > > ##### “(C) > > compensate employees, agents, or other persons for such solicitation or based on the sale of securities displayed or referenced on its website or portal; > > > ##### “(D) > > hold, manage, possess, or otherwise handle investor funds or securities; or > > > ##### “(E) > > engage in such other activities as the Commission, by rule, determines appropriate.” > .
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