SEC Chairman White: Crowdfunding Rules Coming In Fall

SECYesterday SEC Chariman Mary Jo White addressed the timeline for implementation of the remainder of mandates enclosed in the JOBS Act, including rules regarding non-accredited crowdfund investing.

The SEC has proposed or adopted rules for over 80 percent of the more than 90 Dodd-Frank Act provisions that require SEC rulemaking, and completing this rulemaking – and the rulemaking called for under the Jumpstart Our Business Startups Act (“JOBS Act”) – remains a top and immediate priority. It is critical that we execute our responsibilities under both the Dodd-Frank Act and JOBS Act in as timely and smart a way as possibleTestimony by Mary Jo White, July 30 2013

Mary Jo White Chairman SECWhite testified yesterday before the United States Senate Committee on Banking, Housing and Urban Affairs. The topic at hand was steps taken by the SEC to reduce systemic risk in the capital markets. In her testimony she states that the SEC “has proposed or adopted rules for over 80 percent of the more than 90 Dodd-Frank Act provisions that require SEC rulemaking.” White says that finishing rulemaking for Dodd-Frank and the JOBS Act are top priorities for the Commission in the short term.

According to InvestmentNews, Senator Mark Warner (D-Va.) pressed the issue of crowdfunding, continuing his legacy of being bullish on the democratization of access to capital for small businesses.  From the article, emphasis ours…

Mr. Warner said that he had met with startup firms throughout Virginia, especially in rural areas, that need the flexibility to connect with investors that crowdfunding would provide.

“This really could be transformative,” Mr. Warner said. “There’s a nascent industry waiting for the regulations to get out.”

Ms. White was hesitant to provide a specific timeline.

“I’ve been describing multiple front burners,” Ms. White said. “The crowdfunding rule making is on one of those front burners. I define the front burner to be sometime into the fall.