ASA Letter: Congress Should Prioritize Bipartisan Capital Formation Package

WASHINGTON – The American Securities Association (ASA) sent a letter ahead of today’s Senate Banking Committee hearing urging Congress to prioritize and enact a bipartisan capital formation package to expand opportunity for Main Street investors by helping small businesses access U.S. capital markets.

“We look forward to working with each member of the Committee to pass legislation that will assist economic growth, encourage small businesses to go and stay public, and expand opportunity for all Americans in communities across the country,” ASA CEO Chris Iacovella wrote.

“Legislation in this area will further enhance the economic recovery in the small towns, suburbs, and rural communities served by our members. There is a direct link between the regulatory environment for small businesses on Main Street trying to access capital and the vitality of the American economy.”

ASA especially supports legislation that would promote research coverage for small public companies, expand the eligibility of certain popular provisions of the 2012 Jumpstart our Business Startups (JOBS) Act for small businesses, allow emerging growth companies to choose to list their securities on a single exchange and work with that exchange to determine their tick size, broaden the definition of an accredited investor under Securities and Exchange Commission (SEC) rules, and exempt privately held non-custodial brokers from certain audit mandates designed for large firms.

In its letter, ASA also expressed concerns with certain policies that are not related to capital formation and that would have deleterious effects on competition and/or unnecessarily raise costs on Main Street companies and American consumers.

To read the full letter, click here.