Intrastate crowdfunding is now legal in Oklahoma after Governor Kevin Stitt signed Senate Bill 568 on Monday.
The measure, authored by Sen. John Michael Montgomery, R-Lawton, and Rep. Kyle Hilbert, R-Bristow, allows small startup businesses to raise capital through crowdfunding, which is the practice of funding a venture by raising small amounts of money from a large pool of people.
“This measure allows investors of all sizes to participate in investing in Oklahoma businesses,” Montgomery said. “Allowing our small businesses to tap into capital investments in this capacity will be a boost to our state’s effort to diversify our economy. I’m thrilled we were able to see this measure to the finish line, and I thank the governor for his support.”
Under the bill, sales or offers to sell a security are exempt from the Oklahoma Uniform Securities Act of 2004 if:
“Senate Bill 568 cuts red tape and allows greater opportunities for start-up business growth in our state and for Oklahomans to invest in these home-grown companies,” Hilbert said.
The measure went into effect immediately upon signing.