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Senators Pressure Schapiro on JOBS Act Crowdfunding as She Exits SEC
© Image: Eric Blattberg / Crowdsourcing.org
editorial

Senators Pressure Schapiro on JOBS Act Crowdfunding as She Exits SEC

Today is set to be Mary Schapiro's last day at the head of the Securities and Exchange Commission. A handful of lawmakers were hoping that one of her final actions might be to push proposed new rules for equity crowdfunding in the United States out the door with her. But as the end of the day nears, it seems clear that won't be happening.

Earlier this week, a handful of the architects and supporters of the CROWDFUND Act and the JOBS Act that it was later folded into signed a letter to Schapiro urging that the SEC "promulgate proposed regulations on crowdfunding in the most expeditious manner possible."

Shortly after announcing her plans to step down, it was revealed (in a letter from Rep. Patrick McHenry (R-NC) that Schapiro had slowed down the process of drafting rules for one key section of the JOBS Act.

The letter, signed Monday by Senators Jeff Merkeley (D-OR), Michael Bennet (D-CO), Scott Brown (R-MA) and Mary Landrieu (D-LA), as well as Rep. McHenry, acknowledged that it would be difficult for the SEC to meet the 270-day rulemaking deadline outlined in the JOBS Act, but requested that the SEC still attempt it or at least release the proposed rules for comments right away.

We understand the complexity in crafting the new rules. Yet time is of the essence. Market participants are eager to start providing crowdfunding services to entrepreneurs and investors alike, and small businesses and entrepreneurs are eager to raise money and create jobs.

The next steps toward crowdfunding clearly won't happen under Schapiro's watch, leaving it to her interim replacement Elisse Walter, who was CCed on the letter from lawmakers.

Thanks to CFIRA for posting the letter.

 - Eric Mack is Managing Editor for Crowdsourcing.org.  He has covered business, technology and politics for more than a decade for major outlets including CNET, CBS, AOL, NPR, Wired, and the New York Times.  You can contact him at eric.mack@crowdsourcing.org. Find him on Twitter and Google+. Also be sure to follow Crowdsourcing.org on Twitter.

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  • Guest Andrew Dec 17, 2012 11:02 pm GMT

    I definitely agree that time is of the essence. The company I'm working for, RealtyMogul.com, is on the brink of opening its doors to crowdfunding real estate deals, but the company's success hinges on the JOBS Act lifting the ban against marketing to the public for private fund raising. Our hope and goal is to be able to offer transparent real estate investments to everyone, not just the privileged few. The JOBS Act can make this a reality but the delays in lifting the prohibition against general solicitation of accredited investors is delaying us too.

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