Bills
| 3.23.22

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 barely made it out of the House Financial Services Committee, passing by a vote of 29-28. 

-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: