It’s been one year since the Jumpstart Our Business Startups (JOBS) Act was passed with the intention to reduce red tape and costs for initial public offerings. The theory was that by doing this and creating crowdfunding for companies, the IPO market would take off. Unfortunately, the only thing created has been a crowdfunding cottage industry, but no crowdfunded IPOs.
Part of the problem is that the Securities and Exchange Commission hasn’t passed any crowdfunding rules or regulations this year. Next week, Mary Jo White goes before the Senate for approval as SEC chief. She’s expected to get the nod and would probably be at her desk by month’s end. She has already stated that this is a priority for her and it would be an easy way to hit the ground running. Rules can be proposed and opened up for the public comment process and while that is happening the SEC can fix and tweak them. So it’s realistic to think there will be rules by the end of the summer at best and the end of the year at worst.
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