With the anniversary of the signing of the landmark JOBS Act signed on April 5, 2012, the investment crowdfunding community is champing at the bit to get to work, still waiting on the SEC to issue regulations required by the Act.
The regulations, due on January 5, 2013, have not yet been promulgated. In fact, the agency has yet to issue draft regulations for comment, despite many in the industry asserting that the staff completed a draft last fall. The resignation of Mary Shapiro is widely viewed as the cause of the delay, with the appointment of her successor, Mary Jo White seen as both the end and the reason for the delay continue. Without a Senate-confirmed Chair, the SEC continues to wait to issue the new regulations.
According to Jason Best, one of the crowdfunding industry’s prominent voices, White has twice reiterated her view that implementation of the JOBS Act is a top priority. Predicting when her appointment will be confirmed, however, is anyone’s guess, he says.
Crowdfunders are not sitting on their hands waiting for the regulations.
Howard Leonhardt, founder of the California Stock Exchange, a populist exchange for California-based companies, is seeking to take full advantage of a California law that facilitates crowdfunding already by allowing individuals with a net worth of just $75,000 to invest in private, California offerings.
Leonhardt, seeks not only to develop crowdfunding, but also to create a viable stock exchange with a focus on “conscious capitalism.” With a focus on the greater good, he hopes the California Stock Exchange can be a force to drive capitalism toward greater social responsibility.
He says, “We believe that companies that treat their people well, treat their suppliers well, treat the environment well, treat their communities well are better investments in the long run. We want to create a stock exchange that can helps that along.”
The California Stock Exchange is already doing business in a variety of ways, offering dozens of different services to small issuers.
Leonhardt will be the MC at the sold-out Silicon Valley Crowdfunding conference in Palo Alto tomorrow and Friday. He, along with conference organize Sydney Armani and three other speakers from the conference will join me right here on Monday, April 8, 2013 at 11:30 AM Eastern Daylight Time for a live discussion about crowdfunding and its social impacts.
The other participants will include Doug Ellenoff, of Ellenoff Grossman and Schole; Jeffrey Henderson of Invested.in; and Joy Schoffler of Leverage PR.
Source: Forbes – Devin Thorpe