Senators demand SEC release rules on 'crowd funding'

“Proposed regulations have been delayed significantly, and we urge the SEC to move forward with its proposal as soon as possible,” the senators wrote. “We urge you to move quickly to propose rules on crowdfunding.”

ADVERTISEMENT
When Congress passed the JOBS Act and President Obama signed it into law in April 2012, the SEC was directed to issue rules on crowd funding within 270 days, but the senators said it has now been more than 530 days since the bill became law. They said they are “concerned that so much time has passed without action.”

Bennet and Merkley — who were lead sponsors on the CROWDFUND Act — said SEC rules are necessary because mechanisms for small businesses to access capital are vital for job creation and economic growth.

The senators were prompted to send the letter because reportedly, the SEC will soon release the regulations.