Overnight Tech: New crowdfunding rules kick in

LEDE: New crowdfunding regulations went live on Monday that will allow small investors to buy a stake in some private companies.

The rules would allow private companies to raise $1 million per year through crowdfunding with certain reporting requirements. Most individuals would be able to invest about 5 percent of their income a year. The regulations don't touch online platforms like Kickstarter, which allows people to raise money online but doesn't allow donations to be used to buy a stake in the projects they fund.

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A number of critics warn that many startups will chose not to participate in crowdfunding because of the way the regulations are written. Republican Rep. Patrick McHenry (N.C.), with the support of leadership, is pushing a bill to tweak the rules. Among other things, the bill would raise the cap to $5 million a year and allow companies to test out their investment prospects in crowdfunding before fully committing.

The rules were approved by the Securities and Exchange Commission last year but there was a delay before they were implemented. The regulations were one of the last pieces of the JOBS Act, which President Obama signed in 2012.

OLIVER SOUNDS OFF ON 911 CALLS: John Oliver helped flood the FCC with comments a few years back when he highlighted the fight for net neutrality on his HBO show. On Sunday, he took up another FCC-related issue: 911 calls, and the trouble that call centers have in determining the location of calls made from cellphones. Catch Oliver's 15-minute segment here.

THE HILL EVENT: Join us 5/24 for State of the Sharing Economy: A Discussion on the Future of Cross-Border Commerce, featuring conversations with Rep. Darrell Issa (R-Calif.) and Navdeep Bains, Canadian Minister of Innovation, Science, and Economic Development. Topics of discussion include: New markets created by technological innovation, the global sharing economy, and policy & regulatory reforms to protect personal and proprietary data. Register here.

TWITTER TWEAKING CHARACTER COUNT? Bloomberg reported that Twitter in the next few weeks will start allowing people to insert links or post pictures alongside their tweet without it counting against the 140-character limit. The plan, if confirmed, is much less modest than speculation earlier this year that Twitter was considering expanding the character limit. When asked about the report, Twitter said it does not comment on "rumor and speculation."

AND ADDING A NEW BOARD MEMBER: Twitter added Debra Lee, the CEO of BET, to its board on Monday. Her selection comes amid pressure on Silicon Valley companies to diversify their boards along with their workforces.

UBER LAWSUIT DRAMA: The named plaintiff in a class action suit brought by Uber drivers against the company says he isn't happy with the settlement that's been negotiated in the case. Douglas O'Connor reportedly told the court that he feels "utterly betrayed" by the lawyer who represented the drivers. It's the latest development as other lawyers and parties haggle over the settlement, which is set to reviewed by a judge in early June.

COOK TRAVELS TO CHINA: Apple CEO Tim Cook, according to Reuters, met with Chinese executives in an Apple store in Beijing. His visit comes on the heels of the company's $1 billion investment in Didi Chuxing, the ride-hailing startup that represents Uber's greatest rival in the country. Apple has also seen tensions with the Chinese government over the shutdown of the iBooks store and its iTunes Movies product in the country. An earlier report from Reuters said that the next time Cook was in China he would meet with government officials.

ERICKSON ON FACEBOOK: Former RedState editor Erick Erickson said on his current site, The Resurgent, that he was contacted to attend Wednesday's meeting with Facebook ZEO Mark Zuckerberg but will not, in part because of health reasons. But he gave his thoughts on the controversy over whether conservative content was being downplayed on the social media giant. "I appreciate the company reaching out to me, am sorry I can't get to the meeting next week, but think the fact that Facebook is reaching out is a positive sign," he said. "Frankly, I think Facebook has been far more open and fair to conservatives than Twitter, which seems increasingly hostile toward conservatives." For more on the meeting between conservative commentators and Zuckerberg, click here. A Trump adviser will also be in attendance, along with Joel Kaplan, a former George W. Bush aide.

ON TAP:

At 1:30 p.m., the Open Technology Institute will hold a panel on how undermining encryption could harm consumers and the economy.  

IN CASE YOU MISSED IT:

The Supreme Court on Monday handed a victory to the website Spokeo in a ruling that could help credit reporting agencies and online databases avoid class-action lawsuits.  

Secretary of Labor Tom Perez brought Verizon and the unions leading its striking workers on the East Coast to Washington over the weekend for negotiations.

Facebook CEO Mark Zuckerberg is bringing an executive who served as deputy chief of staff in the George W. Bush White House to his meeting with influential conservatives this week, according to a company spokesperson.

Online privacy or security concerns have stopped millions of people in the United States from using the internet to pay bills, shop online or post on social media.

A senior aide to presumptive Republican presidential nominee Donald TrumpDonald John TrumpO’Malley tells Dems not to fear Trump Right way and wrong way Five things to know about the elephant trophies controversy MORE's campaign team will attend a meeting with Facebook CEO Mark Zuckerberg this week aimed at calming fears among conservatives, a company spokesperson confirmed on Monday.

 

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