What Ever Happened to the SEC Office of Small Business Advocate?
In December 2016, President Barack Obama signed into law the SEC Small Business Advocate Act of 2016 or HR 3784.
The Act was tasked to create a new office within the SEC for an individual tasked with protecting and promoting the interests of small business.
Many in the microcap space feel that the SEC has too many rules are designed to address larger firms but end up harming smaller firms that are ill-equipped to manage excessive regulatory demands. It was expected that the SEC Office of Small Business Advocate would advocate for microcap public companies and other small business interests.
In a recent post in Crowdfund Insider, Samuel S. Guzik explained that the SEC began looking for potential applicants for the Office of Small Business Advocate back in the fall of 2017 but there have been no formal updates since.
According to Guzik, an independent advocate could benefit capital formation significantly by expanding Regulation A+ or focusing on an appropriate regulatory framework for blockchain-based securities.
Guzik concludes; “So, most respectfully, perhaps it is high time for the Commission to reconsider its priorities – and address the question posed by then SEC Commissioner Dan Gallagher back in September 2014: “What Ever Happened to Small Business Capital Formation?””
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