Montana and Massachusetts previously filed suit to challenge Regulation A+ adopted by the SEC under the JOBS Act.  On June 5, 2015, Montana requested that the Commission stay the effective date of the amendments to Regulation A+ pending the outcome of the litigation.

The SEC denied Montana’s request for stay. It noted:

  • Montana has not demonstrated a strong likelihood of success on the claim that the Commission’s definition is contrary to the statute.
  • Montana has not demonstrated a strong likelihood of success on the merits of the claim that the Commission failed to adequately analyze the economic consequences of the rule as it relates to investor protection.
  • Montana has failed to show irreparable harm if the rule is not stayed.
  • The public interest is not served by granting a stay because doing so would cause harm and contravene Congress’s will.

There is nothing I can see on the docket in the District of Columbia that would delay the effective date of Regulation A+ this coming Friday, June 19 2015.