Wednesday, September 24, 2014

Key Senator Urges SEC to Quickly Finalize Crowdfunding Rules

Senator Mark Warner (D-VA), a key member of the Banking Committee, strongly urged the SEC to quickly finalize in the coming weeks the regulations implementing the crowdfunding provisons of the JOBS Act. In a letter to SEC Chair Mary Jo White, he said that Title III crowdfunding will unleash new growth opportunities for entrepreneurs. While recognizing that the SEC is making sincere efforts on the difficult issue of state preemption in this area, Senator Warner urged the Commission to find a solution quickly so as not to hold up this important tool that can help democratize financing for entrepreneurs.

Similarly, he also urged the Chair to lead the Commission forward, albeit with care, to finalize regulations implementing Regulation A+ provisions of the Act, while maintaining key investor protections in the qualified purchaser' definition within Title IV of the JOBS Act.

More broadly, the Senator feels strongly that the U.S. will benefit from significant economic development when JOBS Act rulemakings are completed and the focus is squarely on fostering a maturing crowdfunding industry. Congress and the SEC must move forward to strike a balance on state preemption, investor protection and other issues, he said, and avoid entangling entrepreneurs in too much regulatory red tape.

Two years after the passage of the JOBS Act, he emphasized, it is time for crowdfunding rules to be in place to provide clarity for market participants and support the economic activity that will follow.