Senator Drubin gave an impassioned speech on the Senate floor this afternoon partially regarding equity crowdfunding. Here is the link to the CSPAN recording (scroll the video progress bar to 6:38:21):
Whether you watch or not, here is our synopsis:
- This is Senate Majority Whip Dick Durbin’s general speech in reaction to the House J.O.B.S Act that reiterated their earlier bills in a single package bill (HR 3606). Note that Crowdfunding is Title III in HR 3606 and is identical to the language from HR 2930.
- For about 10 minutes Sen. Durbin tears apart the the House package for its lack of regulatory controls on the measures proposed.
- He is most concerned about the Schumer-Toomey IPO on-ramp bill, but also levies a clear argument against going into these reforms (including Crowdfunding) without clearer safeguards against misuse. He has a point there.
- His conclusion near the end of his speech is vital to understand. He wants to see some version of these reforms and is working on it with other Senators, but does not want to repeat the errors from earlier steps towards deregulation.
- He implies his agreement with the Merkley-Brown CrowdFund Act (S.2190) proposed last night and sees merit in helping startups through crowdfunding, but does not want to open a Pandora’s box.
We agree with Durbin’s intent, though not all of his rhetoric, and in this blog post below lay out the rational for balanced regulation in the compromise bill from the Senate that keeps the intent the House bill and provides standard industry safeguards for our fledgling industry:
We look forward to your comments and further discussion. Stay tuned for more coverage from us on this important topic of equity crowdfunding.