We have been closely following the debate on the Senate floor this morning. There is movement on The JOBS Act and it could very well pass today. However, in the speeches today from both Republican Lindsey Graham and Democrat Mary Landrieu, a third option is emerging. This is liberating, because many provisions in the House JOBS Act are subject to abuse and the Senate Democrats’ amendment to the JOBS Act seems unlikely to get its 60 votes today.
The third option is only possible if everyone at the table trusts that everyone at the table wants the JOBS Act to pass and wants government to look functional on this subject of stimulating small business growth and consequent job growth. If we can get a moment of trust on that subject, then the third option is possible.
The third option is that we get a couple more days of debate and amendments from the Senate and afterwards arrive at passage of a full compromise on the JOBS Act with Senate amendments from both parties. For this to happen, something very scary for crowdfunding must happen first; the cloture vote on SA1833 would have to fail at 4pm and the cloture vote on the JOBS Act would have to fail shortly thereafter. However, they would have to fail not because either party wants to kill the JOBS Act and play a blame game, but because both sides want to get the JOBS Act right.
This is a gambit and is dangerous to the equity crowdfunding movement we’ve all built to date, but we at Launcht think if the cloture vote on SA1833 fails it is the best option for long-term success. We deeply hope that in this moment the Senate and all those advocates swirling around it can trust that compromise is possible and right. If SA1833 fails today, we hope that we can all debate and amend for a couple of days and get crowdfunding and the larger package of financial reforms in the JOBS Act right before a vote to pass a revised JOBS Act including an equity crowdfunding provision later this week.