Banking Republicans Roll Out Capital Formation Legislation to Mark 10th Anniversary of JOBS Act
The JOBS Act 4.0 Will Accelerate Economic Growth and Spur New Business Creation
Washington, D.C. – Ahead of the 10th anniversary of enactment of the bipartisan Jumpstart Our Business Startups (JOBS) Act, U.S. Senate Banking Committee Republicans today unveiled a discussion draft of a new plan to help accelerate economic growth and spur new business formation. The draft’s working title is the JOBS Act 4.0.
“The JOBS Act helped to revitalize
interest in the public markets and spur economic growth, but it is clear
significant work remains to be done to give retail investors access to higher
returns and ensure American markets remain the deepest and most liquid in the
world,” said Ranking Member Toomey. “The discussion draft we’re
releasing today incorporates ideas from entrepreneurs, retail investors, and
others, and includes numerous provisions with strong bipartisan support. I look
forward to continue working with both Republican and Democrat colleagues on a
final product that accelerates economic growth and spurs new job creation
across the U.S.”
“As
more companies are created, grow, and go public, every facet of the American
economy benefits,” said Senator Tim Scott. “Entrepreneurs are
responsible for creating countless jobs as they expand and scale their
operations, conduct research and development to produce innovative technology
and medical breakthroughs, and invest in communities all across the country.
I’m proud to be a part of this group that is building on the JOBS Act to ensure
America’s startups can focus their resources into creating high-paying jobs and
inventing next generation technology and lifesaving drugs.”
“Under Ranking Member Toomey’s leadership,
Senate Banking Republicans have worked hard to engage the public on ideas to
improve the process for companies to grow and become publicly traded for
all Americans to invest in,” said Senator Tillis. “I am proud
to partner with my colleagues to introduce these bills to create more jobs,
level the playing field for retail investors, and open up new funding
opportunities for businesses.”
“The American economy is the greatest in
all of human history because of free markets, and the JOBS Act 4.0 will make it
even stronger by promoting a healthy market for investors and companies alike,”
said Senator Kennedy. “This package will help companies to trade more
easily, improve their access to private capital and make meaningful reforms to
the SEC.”
“As Tennessee’s former Commissioner of
Economic Development and now as U.S. Senator, I know that a good-paying job can
solve a lot of ills for Americans, which is why I’m pleased to work with
Ranking Member Toomey and my Banking Committee colleagues on an economic growth
package that will help create jobs and return us to a Blue Collar boom,”
said Senator Hagerty. “One of my top priorities is to ensure the United
States remains the preeminent place to invest capital, which means growing the
private sector, not government. This legislation advances important initiatives
and policies to improve our markets, enhance investment opportunities, and
reduce unnecessary overregulation.”
“Our work today seeks to accelerate
economic growth and spur new business creation. These bills create more access
to capital for businesses on Main Street and in rural communities while
repealing burdensome requirements inhibiting growth and innovation. At a time
with record inflation and Biden’s supply chain crisis, it’s more important than
ever to work towards a regulatory environment where entrepreneurs, small
businesses, and investors can thrive,” said Senator Cramer.
"We should be doing all we can to
reduce unnecessary, burdensome regulations for Montana businesses and help spur
economic growth and job creation,” Senator Daines said.
On February 2, 2021, Ranking Member Toomey
announced requests for
legislative proposals to increase economic growth and job creation by
facilitating capital formation. In response, Committee Republicans received 35 submissions with more than
150 legislative proposals from a wide variety of bipartisan organizations and
stakeholders.
The discussion draft of the JOBS Act 4.0
takes into account stakeholder feedback and represents the collective efforts
of Senate Republicans to draft nearly 30 pieces of legislation, 24 of which
have been introduced as a stand-alone measure, including some with bipartisan
support.
The JOBS Act 4.0 will:
· Encourage companies to be publicly-traded — includes eight initiatives to encourage companies to become publicly-traded, particularly during earlier growth stages, when investors have the chance to earn the highest returns.
· Improve the market for private capital — includes six initiatives to reduce costs associated with seeking capital by appropriately tailoring regulations for small businesses.
· Enhance retail investor access to investment opportunities — includes eight initiatives to prevent retail investors from being excluded from certain investment opportunities.
·
Improve regulatory oversight — includes seven
initiatives to enhance investor protection and privacy and to update outdated
statutory and regulatory provisions.
Committee
Republicans will collect feedback on the discussion draft through June 3, 2022.
To submit feedback, please email submissions@banking.senate.gov.
Click here
to read the discussion draft.
Click here
for a one page fact sheet on the JOBS Act 4.0.
Click here
for a section-by-section.
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