U.S. Sen. Tim Scott (R-SC) introduced a legislative proposal designed to open up capital markets and generate economic growth.
The Empowering Main Street in America Act seeks to help entrepreneurs, small businesses, and newly public companies more easily access the funding necessary to expand their operations. It will look to do this by streamlining and modernizing the rules governing capital raises for public and private markets.
Further, it seeks to improve access to capital in rural and non-metropolitan hubs and for a broader swath of entrepreneurs who continue to face challenges accessing capital including rural residents, women, veterans, and minorities.
“Our capital markets are the global gold standard and help make the strength of the American economy the envy of the world—but they shouldn’t be limited to elites on Wall Street or industry giants in California and New York. All Americans should be able to invest amounts of their choosing in order to grow wealth and build their communities, and our small business owners should be able to access funding in the same way large corporations do. This framework makes substantive changes to our capital markets system that will provide Americans across the country, including those who are often left behind, with the tools to achieve financial security and the American Dream,” Scott, ranking member on the Senate Banking Committee, said.
Scott said that innovation, not regulation, spurs economic growth, so this bill will focus on limiting regulatory hurdles that hamper a company’s ability to grow. It will also look to expand the definition of who can qualify as an accredited investor to increase opportunities for investors.
Finally, the Empowering Main Street in America Act seeks to ensure more consistent transparency and accountability to Congress and the public by extending the oversight provisions authorized under the Dodd-Frank Act. In effect, it would mandate the SEC Chair to testify on a semi-annual basis and to statutorily require the SEC to perform thorough rulemaking cost-benefit analysis.