Loosening Financial Markets Restrictions: Shortening Holding Times for Restricted Securities (H.R. 4554)
Do you support or oppose this bill?
What is H.R. 4554?
(Updated July 19, 2017)
This bill alters three things related to companies that the Securities and Exchange Commission (SEC) regulates. First, the bill reduces the holding time for the release of restricted securities to the public from six months to three months. Second, the bill would allow for the public resale of restricted securities that were held by a shell company two years after that company is no longer a shell company. Third, it would exempt such restricted securities from state regulation.
Argument in favor
Addresses increased needs for liquidity and the increased speed of information traveling through financial markets.
Argument opposed
Highly contentious bill that disallows the SEC from doing its job by not giving the agency enough time to do it. Encourages PIPE deals.
Impact
This would affects shell companies, restricted securities, and both American and global financial markets.
Cost of H.R. 4554
A CBO cost estimate is unavailable.
Additional Info
Of Note:
-This bill was one of more than a dozen bills to come out of that May 7th House Financial Services Committee Markup. The other bills are:
- H.R. 4200, the SBIC Advisers Relief Act of 2014"
- H.R. 4568, the "Small Business Freedom to Grow Act of 2014"
- H.R. 4571, to direct the Securities and Exchange Commission to revise its rules so as to increase the threshold amount for requiring issuers to provide certain disclosures relating to compensatory benefit plans
- H.R. 4569, the "Disclosure Modernization and Simplification Act of 2014"
- H.R. 4570, the "Private Placement Improvement Act of 2014"
- H.R. 4565, the "Startup Capital Modernization Act of 2014"
- H.R. 4564, the "Equity Crowdfunding Improvement Act of 2014"
- H.R. 2629, the "Fostering Innovation Act of 2013"
- H.R. 1779, the "Preserving Access to Manufactured Housing Act of 2013"
- H.R. 2673, the "Portfolio Lending and Mortgage Access Act"
- H.R. 3211, the "Mortgage Choice Act of 2013"
- H.R. 4466, the "Financial Regulatory Clarity Act of 2014"
- H.R. 4521, the "Community Institution Mortgage Relief Act"
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