Republicans on the Senate Banking Committee introduced a discussion draft of a plan to accelerate economic growth and spur new business formation.
The draftʻs working title is the JOBS Act 4.0, which is seen as a follow up to the Jumpstart Our Business Startups (JOBS) Act, enacted 10 years ago. It represents the collective efforts of Senate Republicans to draft nearly 30 pieces of legislation, 24 of which have been introduced as a stand-alone measure, including some with bipartisan support.
“The JOBS Act helped to revitalize interest in the public markets and spur economic growth, but it is clear significant work remains to be done to give retail investors access to higher returns and ensure American markets remain the deepest and most liquid in the world,” Sen. Pat Toomey, ranking member on the committee. said. “The discussion draft we’re releasing today incorporates ideas from entrepreneurs, retail investors, and others and includes numerous provisions with strong bipartisan support. I look forward to continue working with both Republican and Democrat colleagues on a final product that accelerates economic growth and spurs new job creation across the U.S.”
The discussion draft of the JOBS Act 4.0 would do several things, including encouraging companies to be publicly traded. There are eight initiatives to encourage companies to become publicly traded, particularly during earlier growth stages, when investors have the chance to earn the highest returns.
It also seeks to improve the market for private capital. The draft has six initiatives to reduce costs associated with seeking capital by appropriately tailoring regulations for small businesses.
In addition, it looks to enhance retail investor access to investment opportunities. There are eight initiatives to prevent retail investors from being excluded from certain investment opportunities.
Finally, it looks to improve regulatory oversight. The draft has seven initiatives to enhance investor protection and privacy and update outdated statutory and regulatory provisions.
“As more companies are created, grow, and go public, every facet of the American economy benefits,” Sen. Tim Scott (R-SC) said. “Entrepreneurs are responsible for creating countless jobs as they expand and scale their operations, conduct research and development to produce innovative technology and medical breakthroughs, and invest in communities all across the country. I’m proud to be a part of this group that is building on the JOBS Act to ensure America’s startups can focus their resources into creating high-paying jobs and inventing next generation technology and lifesaving drugs.”
The draft takes into account stakeholder feedback. Committee Republicans will continue to collect feedback on the discussion draft through June 3.
“Under Ranking Member Toomey’s leadership, Senate Banking Republicans have worked hard to engage the public on ideas to improve the process for companies to grow and become publicly traded for all Americans to invest in,” U.S. Sen. Thom Tillis (R-NC) said. “I am proud to partner with my colleagues to introduce these bills to create more jobs, level the playing field for retail investors, and open up new funding opportunities for businesses.”