In a recent speech at the annual “SEC speaks” event, current Securities and Exchange Commission chair Elisse Walter placed the word “crowdfunding” immediately after the word “soon.”
Well, that seems like progress.
Of course, I could just be engaging in the time-honored tradition of over-parsing every word uttered by a beltway insider in search of clues about what’s going on inside the government. Here’s the complete sentence:
“Soon, crowdfunding will bring the potential for a broader range of investors to provide private capital, although their investments will be and should be limited. “
As most people that have ever visited this site — or listened to our recent podcast on the status of Title II and Title III of the JOBS act (those are the parts that impact equity crowdfunding) recorded less than 48 hours before Walter’s talk — can attest, the implementation of the law is a little behind schedule.
Related: – JOBS Act Crowdfunding Will Happen: Sara Hanks- Mary Jo White to lead SEC?- Proposed Qualification Exam for Crowd Investing
The frustrating part about the JOBS Act timeline is the lack of someone to point a finger at (OK, so maybe Mary Schapiro slowed things down a bit, but she’s out of the picture now). The wheels of Washington bureaucracy just simply are not designed to turn very quickly, especially when you’re trying to create a new class of security just a few years after some (completely different) little-understood financial instruments helped take down the global economy.
But the SEC is now providing a light at the end of the tunnel.
“We are busily working on getting a recommendation to the commission,” Lona Nallengara, acting director of the agency’s Division of Corporation Finance told the crowd at the event, according to the Wall Street Journal. He called it a “top priority” for Walter.
There is a caveat,