Six Congressional Democrats issued an open letter dated October 5 to SEC Chair Mary Jo White, begging the regulator to issue the long-overdue rules to implement crowdfunding under Title III of the Jumpstart Our Business Startups (JOBS) Act of 2012.
Congressman Eric Swalwell (D-CA), along with House Representatives Derek Kilmer (D-WA), Seth Moulton (D-MA), Grace Meng (D-NY), Ruben Gallego (D-AZ), and Patrick Murphy (D-FL) joined the chorus of elected officials demanding rules for Title III, retail crowdfunding be released immediately.
The JOBS Act was passed with bipartisan support and praised by President Obama as a way to spur the economy by making it easier for small businesses to raise capital through crowdfunding. The law required the SEC to issue regulations before the end of 2012 so that companies could start using crowdfunding.
Politics delayed the SEC’s release of proposed rules for more than a year and now, more than three year after passage of the law, those rules have still not been implemented.
Nevertheless, SEC Chair Mary Jo White has recently been quoted to say that the rules will be forthcoming and other activities (like FINRA’s modification of its crowdfund portal rules) suggests that implementation of the regulations may be just around the corner.