Shakeup at the SEC Could Expedite Equity Crowdfunding


You’d think a vacancy at the top at the Securities and Exchange Commission would cause further delays in new regulations implementing crowdfunding and other provisions of the JOBS Act.

But that may not be the case, according toKaren Kerrigan, who heads the Small Business & Entrepreneurship Council and helped lead the push on Capitol Hill for the JOBS Act.

This legislation was enacted in April to make it easier for entrepreneurs to raise capital. The SEC, however, has beendragging its feet on issuing the regulations needed to make the law’s provisions a reality.

SEC Chairman Mary Schapiro announced yesterday that she will leave the agencynext month. That could be be good news for crowdfunding regulations, Kerrigan said, especially since Schapiro never seemed to embrace this innovation, which will allow businesses to raise capital by selling equity to lots of investors through Internet intermediaries..

“Perhaps new leadership — even if it is an interim leader — will breath some enhanced productivity and energy into the SEC’s work,” Kerrigan said. “At the staff level, the SEC is very engaged on JOBS Act provisions, and with the right signal and leadership I think the process can accelerate.”

SEC Commissioner Elisse Walter will serve as the agency’s interim chairman until Schapiro’s replacement is named by President Barack Obama and confirmed by the Senate — a process that could take months. Walter, however, appears to be more crowdfunding-friendly than Schapiro.

Crowdfunding advocates “showed up in force” at a Nov. 15 SEC forum on how to improve access to capital for small businesses, Kerrigan said.

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About Stephen G. Barr, Group Publisher

Author, Syndicated Columnist, Editor In-Chief and Group Publisher at SGB Media Group, a social media marketing firm specializing in digital media content production, publishing, affiliate marketing, public relations and advertising. Over 25 years experience in retailing, advertising, website & online forum development, niche social networking, affiliate marketing, search optimization, branding and identity, site location, non-profit fund raising. Event planning, promotion, production and MC/Host at public events. Author, Editor & Publisher of 35 syndicated, digital publications utilizing multiple digital distribution channels in conjunction with launching and administrating national advertising campaigns for major Fortune 500 advertisers in partnership with Google, Ning, Facebook, Myspace, Yahoo, DoubleClick, LinkShare, PepperJam and other industry leading third party affiliate networks. Product development team member from conception to launch on many websites, tangible goods and organizational structure for start ups. Specialties: Public relations, retailing, advertising, website & online forum development, niche social networking, blogging, email campaigns, affiliate/performance marketing, search optimization, branding and identity, site location, event production & promotion, non-profit fund raising and tasteful, responsible adult content publishing. An internationally recognized and read social media columnist & pundit on The Examiner, Associate Content, Vator.tv, X-Biz.net and Technorati and his own affiliated sites.
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