Kennedy Joins Banking Republicans in Rolling Out Capital Formation Legislation to Mark 10th Anniversary of JOBS Act – Press releases

WASHINGTON — Sen. John Kennedy (R-La.) joined Republican members of the Senate Banking Committee today to unveil a bill that would accelerate U.S. economic growth. The working title of the project is JOBS Act 4.0.

“The US economy is the largest in human history thanks to free markets, and the JOBS Act 4.0 will make it even stronger by promoting a healthy market for investors and businesses. This package will help businesses to trade more easily, improve their access to private capital and make meaningful reforms to the SEC,” Kennedy said.

“The JOBS Act has helped revitalize interest in the public markets and spur economic growth, but it is clear that significant work remains to be done to give retail investors access to higher returns and ensure that US markets remain the deepest and most liquid in the world. The discussion draft we are releasing today incorporates ideas from entrepreneurs, retail investors and others, and includes many provisions that have strong bipartisan support. I look forward to continuing to work with my fellow Republicans and Democrats on an end product that accelerates economic growth and spurs the creation of new jobs in the United States,” said Sen. Pat Toomey (R-Pa.), a ranking Banking Committee member.

The JOBS Bill 4.0 Bill incorporates feedback from stakeholders and represents the collective efforts of Senate Republicans to introduce 24 bills, four of which currently have bipartisan support. Kennedy authored six of these 24 bills.

The JOBS Act 4.0:

  • Encouraging Companies to Go Public: Includes eight initiatives to encourage companies to go public, particularly during the early stages of growth, when investors have the opportunity to earn the highest returns.
  • Improving the private capital market: includes six initiatives aimed at reducing the costs associated with raising capital by tailoring regulations appropriately for small businesses.
  • Improving retail investors’ access to investment opportunities: includes seven initiatives aimed at preventing retail investors from being excluded from certain investment opportunities.
  • Improving Regulatory Oversight: Includes seven initiatives aimed at improving investor protection and privacy and updating outdated laws and regulations.

Kennedy introduced six bills in this package, including:

  • The Expanding Access to Capital for Rural Job Creators Act would examine the issues that rural small businesses face when trying to access capital. The bill would require the Office of the Small Business Capital Formation Advocate of the Securities and Exchange Commission (SEC) to submit an annual report on the unique challenges small businesses in rural areas face when attempting to obtain capital.
  • The Main Street Growth Act would expand small businesses’ access to capital markets through specialized exchanges called “venture capital exchanges” for trading stocks. The bill would give investors better access to the potential growth opportunities that small businesses offer.
  • The Bad Actor Tracking Act of 2022 would protect the public from financial crime and abuse by creating a public database of people who have committed financial crimes or who are civilly liable for financial misdeeds.
  • The Personally Identifiable Investor Information Protection Act would protect information that could reveal the identity of U.S. investors by prohibiting the SEC from requiring brokers to submit investors’ personally identifiable information to its consolidated audit trail. .
  • The Intelligent Tick Study Act would require the SEC to examine the economic impact that trading increases — called ticks — of plus and minus a dime have on the stock market. The bill would help small companies trade more efficiently by allowing the SEC, through rulemaking, to determine appropriate listing sizes for small publicly traded companies.
  • The Small Business Mergers, Acquisitions, Sales and Brokerage Simplification Act of 2021 would help small business owners access the services of small business mergers and acquisitions (M&A) brokers. The bill would allow M&A brokers of small businesses to arrange sales and purchases of ownership and control of private companies without registering as “broker-dealers” with the SEC and the Financial Industry Regulatory Authority. This would remove bureaucratic hurdles, making their services more affordable and accessible to small business owners who need help buying or selling businesses.

The discussion draft of this legislation is available here.

A sheet on the JOBS Act 4.0 is available here.

A section-by-section summary of the package is available here.

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