The JOBS Act leaves the details of crowdfunding and private offerings in the hands of the Securities and Exchange Commission. As a result, the bi-partisan legislation initially developed in President Obama's Startup Initiative, will now be turned over to the SEC who has not been particularly excited about drafting quick and easy regulations to implement these ground breaking initiatives. Although the legislation will provide new and innovative fundraising strategies for many small businesses, the SEC's rulemaking process will likely delay the implementation of the JOBS Act for several months, if not longer.
The JOBS Act has created numerous opportunities for small businesses and startups to grow through easing the burdens of some of the securities laws and providing unprecedented access to capital. In addition, the JOBS Act provides these opportunities throughout the entire life-cycle of small business: from the seed-round of crowdfunding through the "on-ramp" of the Emerging Growth Company. The JOBS Act has not reached the finish line as of yet. It is now in the hands of the SEC, which has already signaled that it may drag its feet during the rulemaking process and delay the implementation of the law.