Shipkevich Bitcoin and ICO Attorney
Felix Shipkevich February 20, 2012

The U.S. House Financial Services Committee (FSC) approved four bills designed to encourage capital formation and amend gaps in Dodd-Frank. The most popular bill in both the House and Senate  reduces regulatory burdens on small companies, enabling them to raise capital and go public. The White House, which called for reforms to drive small business group, also supports the measure.

The proposed ruling establishes a new category of companies, “emerging growth companies.” These companies are defined as having less than $1 billion in annual revenues upon registration with the Securities and Exchange Commission (“SEC”). The law would provide the companies with an “on-ramp,” encouraging they go public before full compliance with SEF regulations. The regulations would be phased in over a five-year period, or until the company could afford the costs.

The committee approved the measure in a 54-1 vote. The U.S. House of Representatives will now vote on the bill.

Read more about the proposed measure.

© David Paul Ohmer