Last week, Representative Maxine Waters, Chairwoman of the House Financial Services Committee, announced that Representative Brad Sherman was elected by the Committee’s Democratic Caucus to serve as Chairman of the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets. Sherman, from California, has been in the US House of Representatives since 1997.
Representative Sherman issued the following statement on his selection:
“It is an honor to be selected as Chairman of the House Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets. My colleagues are already giving me good ideas for hearings and legislation. I am committed to defending investor protections, improving access to capital and maintaining the Wall Street reforms that have helped fuel our economy. As a CPA, I also look forward to looking at accounting issues.”
Sherman revealed his interest in Chairing the Subcommittee in a letter he sent to his fellow members on the House Financial Services Committee in November. At that time, Sherman pointed to his seniority on the Committee, as well as his “strong progressive record” from “forcing executives who flew private planes seeking billion-dollar bailouts to raise their hands, to pointedly asking questions of Wells Fargo CEO, Tim Sloan, who resigned shortly after our hearing.”
“As a former business attorney, and a 22 year veteran of the Financial Services Committee, I have a deep understanding of our capital markets, of the laws which protect investors, and the issues faced by entrepreneurs.”
He also referenced the support of Chair Maxine Waters for the Subcommittee Chairmanship – a powerful voice backing his candidacy.
Access to capital for early-stage ventures remains a challenge as much funding remains centered in hot-beds of innovation such as Silicon Valley or around Boston – regions where much wealth has already been generated by successful entrepreneurs willing to risk much-needed growth capital. The Small Business and Entrepreneurship Council (SBE Council) has outlined what needs to be done to improve access to capital for early-stage firms. Importantly, improvements to online capital formation (ie Crowdfunding) are near the top of the SBE Council list including Reg CF. Removing the excessive bureaucracy regarding small business operation and is prominently mentioned as well.
It is also interesting to note that one area of entrepreneurship that can be certain it won’t receive any support by the Subcommittee under Sherman’s tenure is within the digital assets sector, or more specifically, cryptocurrencies. Representative Sherman is well-known for his disdain of these blockchain fueled ventures having said that cryptocurrencies’ “sole” application is for the undermining of the rule of law, and demanding that they should be banned.
Not too long ago, blockchain-focused VC Alon Goren invited Representative Sherman to publicly debate the pros and cons of crypto. As of yet, we are not aware of any response from the Congressman.