Congressional Action Affects Startups

bigstock-The-White-House-at-night--Was-38537356SEC expert and angelMD Counsel Bill Carleton wrote yesterday about start ups and congressional intent. Carleton cites key policy changes in the Jobs Act, which became law when President Obama signed the bill in 2012. However, the recent SEC ruling affects the Jobs Act: “What’s happening is hard for non-lawyers to understand,” Carleton says. “The big media soundbite is that suddenly it is okay for hedge funds to advertise. In some publications, that message is translated into “it is okay for startups and private companies to advertise.’ These soundbites are true, but only half-true. Missing in the story is that new rules proposed by the SEC will make the lifting of the ban on general solicitation much less meaningful, perhaps a false promise.” You can read more here.

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