Senator Dodd's financial regulatory reform bill would require the SEC to review all accredited investor offerings and if the SEC did not review the offering, would deny federal covered security status to the offering unless a state determined that the security qualified as a federal covered security. Section 926 of the bill provides:
The Commission shall review any filings made relating to any security issued under Commission rules or regulations under section 4(2), other than one designated as a non-covered security under subparagraph (A)(iv), not later than 120 days of the filing with the Commission.
I believe this is a huge step backwards in the law that will make it harder and more difficult for early stage companies to raise money. Under current law, there is no SEC review prior to being able to raise money in an all accredited investor offering. Can you imagine having to wait 120 days before being able to close your financing?
This proposed change in the law will hurt job growth, and hurt our overall economy. There has been a lot written about this in the press recently, and you can find links to many of these articles at http://www.saveregd.com. If you are interested in voicing your opinion, please sign the petition at the above link
(The opinions expressed here are my own.)