SEC’s critics have charges that it has not given sufficient priority to improving the environment for capital formation as required by the agency’s mission. This hearing’s purpose is to examine proposals that would make it easier for companies to attain equity funding and the extent to which the SEC can be made for efficient in capital formation.

     Chairman Garrett’s opening statement was a mixed message that on one hand there are signs that the Jobs Act  has stimulated the economy and the capital formation effort. On the other hand, Cong. Garrett believes the SEC is not as effective as it should be since it has yet to promulgate all of the regulations required by the Jobs Act.

     Most of the witness represented companies that cited the lack of modernized SEC rules and regulations as evidence of failure of the SEC to do all it can to create capital. A Georgetown professor disagreed saying impediments are economic rather than regulatory.