SEC Chair Gensler and Commissioner Peirce Seek New Ideas to Promote Capital Formation
SEC Chair Gary Gensler and SEC Commissioner Hester M. Peirce urged Small Business Forum participants to recommend policies to encourage capital formation. Mr. Gensler said the information gathered at the forum will be used to inform a report to be delivered to Congress.
In remarks before the 42nd Annual Small Business Forum, Mr. Gensler asked for policy recommendations on increasing the "efficiency, integrity, and resiliency" of markets to lower the costs associated with raising capital and increasing investors’ returns.
Ms. Peirce requested input on (i) potential amendments to the SEC’s accredited investor regime, and (ii) regulatory measures to support "early-stage" founders. She emphasized that good policy allows for a wide range of investors to engage safely in the early-stage growth of companies. She cautioned that regulation can prevent capital growth as wealth, and that income requirements limit the pool of eligible accredited investors. Ms. Peirce also asked panelists to weigh-in on the "uneven geographic distribution" of capital and how entrepreneurs ultimately find their first investors.