As Crowdfund Insider reported earlier this week, the Securities and Exchange Commission (SEC) had scheduled an Open Meeting of the Commission to address access to capital for private firms. To quote the meeting memo:
“The Commission will consider whether to propose rule amendments that would facilitate capital formation and increase opportunities for investors by expanding access to capital for entrepreneurs across the United States. Specifically, the proposed amendments would simplify, harmonize, and improve certain aspects of the framework for exemptions from registration under the Securities Act of 1933 to promote capital formation while preserving or enhancing important investor protections. The proposed amendments seek to address gaps and complexities in the exempt offering framework that may impede access to investment opportunities for investors and access to capital for issuers.”
This meeting has now been canceled without a new date for the meeting. The Commission is scheduled to meet later today in a closed gathering not open to the public. The public meeting may be a victim of the fast-spreading Coronavirus as more and more public gatherings are being canceled or postponed. Or it could be indicative of something else.
Typically, an Open Meeting by the Commission indicates a vote by Commissioners and pending rule change. While it is not completely clear what the Commission was planning to address it was possible that a proposal would impact online capital formation and private securities exemptions.