A majority of both parties supported the JOBS Act and leaders in both parties claim credit for the accomplishment. You would think they would want to implement the Act as soon as possible, but except for a few members in either chamber, the Congress is oblivious too.
April 5 marks the one year anniversary of the JOBS Act. It legalized equity-based crowdfunding in the U.S., which would allow ordinary Americans to invest in newly forming and established small businesses they believe in, while realizing a return on their contribution.
Kim Kardashian must have hated it because the big news this week was the crowd funding of the return of Veronica Mars. In 4 hours 24 minutes 33,000 people set a Kickstarter record by pledging 2.1 million dollars to make a movie Warner Brothers was unwilling to fund itself.
There are scores of crowdfunding advocates and entrepreneurs poised to jump into this emerging marketplace as soon as the final rules and regulations are finished, but there are crowdfunding detractors as well who caution that this will be a fraught process.
I often write about the brave and innovative entrepreneurs in Texas, but that is only because they are working overtime to lead by example in the startup community. Texas companies have made it a habit to dream big and follow that up with execution and realistic solutions.
She now has an opportunity to show that she also has the strength of character to lead this often-fractious agency in these difficult and challenging times. Nothing less than the safety and integrity of our capital markets depend on the choices she makes.
Complex financial schemes and investment theses lend themselves to inefficiency and un-internalized risks. That's why investors may want to take a look at consumer products. As consumers themselves, they "speak the same language."
Tuesday's vote has a significant impact on the nation's 28 million small businesses, which impacts our national economy as well. Small businesses are responsible for creating two out of every three new jobs over the past two decades. The candidates have both had their say, now it is our turn.
America's children could have smaller class sizes. Cities and towns could have more police. Roads and bridges would be repaired and rebuilt. The foundation for a new economy could begin to be cobbled together.
In part, the JOBS Act permits entrepreneurs to raise up to $1 million in any 12-month period with much less stringent requirements. Moreover, non-accredited investors will be permitted to invest up to $2,000 each.
Today the SEC stands at a crossroads. The decisions it makes, and the decisions that are made for it by Congress, will determine whether the agency can reemerge as a credible investor watchdog or whether it will be permanently relegated to industry lap dog status.
The JOBS Act at least has initiated a shift from heavier regulation to smarter regulation -- regulation that strikes a good balance between protecting investors and stimulating a more robust, fluid, and effective capital market.
Whether we like it or not, government is an increasingly central player in social and environmental markets. After all, there is a clear public interest in the positive benefits impact investing can bring.