Senator Warner today welcomed the release of the SEC rules on crowdfunding and encouraged the SEC to continue to work to develop the rules.

“I’m pleased the SEC has finally issued proposed rules for equity crowdfunding. There are a number of details to be worked out,” said Senator Warner. “This includes whether the proposed paperwork requirements are reasonable for those seeking investors and whether the rules around advertising and social media platforms will work for startups. It may not be worth the cost for startups to go through an overly complex regulatory filing process.”

Earlier this summer, Senator Warner pressed SEC Chair Mary Jo White to introduce the new regulations for crowdfunding. He also joined a bipartisan group of senators calling on the release of the rules this past Monday.

Sen. Warner worked with colleagues to make equity crowdfunding a key component of the bipartisan Jumpstart Our Business Startups (JOBS) Act, which was signed into law by President Obama in April of 2012. After its passage, Senator Warner teamed up with a bipartisan group of senators to reintroduce Startup Act 3.0 which builds upon earlier versions of the bill and aims to encourage investments in younger, smaller startup companies, and ease regulatory requirements that could make it more difficult for smaller businesses to expand and create jobs. 

Senator Warner will continue to monitor the rulemaking process for equity crowdfunding. “I don’t think it is possible to know everything about how this market will function right now. The best thing we can do for investors and the public is to set fair and reasonable rules that everyone has to follow. There will inevitably be some problems along the way, and the SEC needs to stand ready to address issues in an appropriate and timely way,” said Senator Warner.

A copy of the SEC Crowdfunding Proposed Rules can be found below:

Www.sec.Gov Rules Proposed 2013-33-9470