On October 12th the Financial Industry Regulatory Authority, Inc. (“FINRA”) filed proposed rules with the Securities and Exchange Commission (“SEC”) that would lead to implementation of the crowdfunding provisions of Title III of the Jumpstart Our Business Startups Act (“JOBS Act”) and now it’s time for the SEC to step up to the plate, do what it was mandated to do and adopt the rules. The SEC meeting was announced without much fanfare on October 26th providing just four days before the meeting. Could it be that something that makes so much sense, is over three years late, was mandated by congress and can prove to be the “Game Changer” for Startups and Small Businesses described by President Obama will happen?
Please let it be so.
Maybe, just maybe this is a special moment for this to happen, a moment not planned or designed but rather the result of a number of developments coming together to provide a huge opportunity. First, we are in the middle of an election cycle in the United States and delivering on a promise this size will no doubt become fodder for politicians. Fantastic, I could not think of a faster and more efficient way to get television time for crowdfunding.
Dealindex recently projected crowdfunding to hit $65 billion in 2015 and what better to push this incredible growth to the next level than dramatic changes to a stale financial market that has been locked in the past for 80 years. If adopted this Friday the rules come into effect in 90 days or the end of January, a belated gift for all and a great way to kick of 2016.
If we start counting from April 2012, when the Jumpstart Our Business Startups (JOBS) Act was signed into law by President Barack Obama, it is 3.5 years and I will say years well spent by the industry having expanded, grown, and proven the concept. The industry has created the infrastructure and all its necessary ancillary tools and services to flourish. The industry is ready for this. The industry is ready and enough awareness and interest has been developed to guarantee a very successful fast start.
In short, I am hoping that a certain group of leaders looking for employment in Washington, D.C. at this moment adopt a new narrative as part of their discourse – a real plan for economic growth and job creation at a time when a growing trend has substantial momentum and the industry and marketplace are ready to make it a real game changer.
But we need a help. We need the next step forward approved by the SEC this Friday and yes, it is this monumental. It is this important and this powerful.