On April 5, 2012, President Obama signed into law
the Jumpstart Our Business Startups Act
‘‘JOBS Act.’’ The JOBS Act, which was passed in
both the House and the Senate with bipartisan support,
will simplify the initial public offering process for many
companies and create new ways of raising private capital.
As the JOBS Act made its way through Congress, a
number of industry groups and organizations voiced
both support and opposition. Both the National Venture
Capital Association as well as thousands of entrepreneurs
urged legislators to approve the bill, stressing the
positive impact it is expected to have on the economy.
Meanwhile, the North American Securities Administrators
Association and other organizations expressed
concerns that relaxing securities regulations could result
in more securities fraud. The final version of the
JOBS Act includes a number of compromises aimed at
addressing the concerns while preserving the perceived
benefits. This article originally appeared in Bloomberg BNA's Securities Regulation and Law Report,
43 SRLR 823, 04/23/2012.