Reports that U.S. Securities and Exchange Commission (SEC) Chairman Mary Schapiro will be leaving her post next week have raised questions as to the fate of a number of high-profile issues currently on the Commission’s docket. Chief among them is the concern that long-awaited crowdfunding regulations tied to the JOBS Act – rules that would allow companies to raise capital via share offerings primarily marketed to small investors online – may be delayed.
Few doubt that whomever President Obama chooses to succeed Chairman Schapiro will face a lengthy and contentious Senate confirmation process. And when the SEC does finally get around to its mandate to publish crowdfunding rules, the process will only be half completed, as the Financial Industry Regulatory Authority (FINRA) must then publish its own guidance before online equity portals can open for business.
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