The U.S. Department of the Treasury released a report detailing how to streamline and reform the U.S. regulatory system for the capital markets. Treasury’s evaluation of current capital market regulations found that there are significant reforms that can be undertaken to promote growth and vibrant financial markets while maintaining strong investor protections. The report was in response to Executive Order 13772 issued by President Trump on February 3rd, which calls on Treasury to identify laws and regulations that are inconsistent with a set of Core Principles of financial regulation.
“The U.S. has experienced slow economic growth for far too long. In this report, we examined the capital markets system to identify regulations that are standing in the way of economic growth and capital formation,” said Treasury Secretary Steven T. Mnuchin. “By streamlining the regulatory system, we can make the U.S. capital markets a true source of economic growth which will harness American ingenuity and allow small businesses to grow.”
In July, 2017 CCA was interviewed for the report in a call with Karen Kerrigan, President and CEO of the Small Business and Entrepreneurship Council. All their recommendations were included in the final report. They included:
- Allowing the use of Single Purpose Vehicles
- Fixing an error in the final bill to now allow investors limits based on the ‘greater of’ income or net worth
- Increasing the cap from $1M to $5M
To support Treasury’s claims, results from CCA’s report “One Year into Regulation Crowdfunding and It Is Off to the Portal Races” were used. The full Treasury report can be found here.