Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, delivered the following opening statement today at a joint Capital Markets and Government Sponsored Enterprises Subcommittee and the Subcommittee on TARP, Financial Services Bailouts of Public and Private Programs hearing on the implementation of the JOBS Act:
"Thank you Chairman McHenry. I appreciate you and your staffs' collaboration with the Capital Markets Subcommittee today on this important joint subcommittee hearing today. I think that having this hearing today be a joint subcommittee hearing across two different authorizing committees should show the SEC and the American public just how much of a priority this legislation is.
"I was dismayed to recently learn that the SEC, after missing its initial 60 day requirement for the implementation of the General Solicitation part of the bill, had again delayed implementation -- even after the staff had proposed moving forward with an interim final rule. This type of delay on what is a very simple and straightforward requirement from Congress is completely unacceptable.
"This rulemaking process is not setting up a regulatory framework for the multi-trillion derivatives market. It is on a topic that has been around for a long time and is well known by the SEC and market participants. This is extremely disturbing and I expect and hope the SEC to move forward with finalizing this rule in the near future.
"Earlier this year, Congress passed the Jumpstart Our Business Startups (JOBS) Act. This legislation would ensure that over burdensome regulation does not strangle innovation and job creation.
"Specifically, the JOBS Act would ease the burden of capital formation on entrepreneurial growth companies that have traditionally served as the U.S. economy's primary job creators. In addition, this legislation would provide a larger pool of investors with access to information and investment options on these companies that do not currently exist.
"With venture capital fundraising stagnant and the initial public offering (IPO) market largely closed off, innovative start-up companies who cannot access the capital they need to grow have been forced to delay research on promising medical, scientific and technological breakthroughs. That has hurt our economy and our global competiveness because emerging companies need capital.
"Developing medical cures to help people live longer, healthier, and more productive lives requires capital. Developing technology to improve the speed of communication requires capital. Developing alternative energy technologies to reduce our dependence on fossil fuel requires capital.
"The implementation of the JOBS Act will provide start-up companies with a cost effective means to access capital and keep this country at the forefront of medical, scientific, and technological breakthroughs. With our nation still struggling with persistently high-unemployment, it is essential the bipartisan JOBS Act implementation becomes a higher priority at the SEC and is completed in the very near future."