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senate Bill S. 488

JOBS Act 3.0: Reforming & Updating Financial Regulations to Help Startups

Argument in favor

This bipartisan legislation contains numerous commonsense solutions that improve the regulatory environment for startups, investors, and financial firms that will spur job creation and economic growth.

tituswife's Opinion
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07/17/2018
Yoo hoo, Senators Fischer and Sasse, no more voice votes I want to know where my representatives stand on issues.
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Santiago's Opinion
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07/17/2018
Regulations choke and hinder the private sector. This bipartisan legislation contains numerous commonsense solutions that improve the regulatory environment for startups, investors, and financial firms that will spur job creation and economic growth. Get the bloated federal government out of matters of the private sector.
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SneakyPete's Opinion
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07/17/2018
👍🏻S - 488 - The JOBS Act 3.0 👎🏻 I’m in strong support of the bill S 488 — the JOBS and Investor Confidence Act of 2018 or JOBS Act 3.0 — would aim to ease regulations for startups, investors, and financial institutions. It’d serve as the legislative vehicle for more than 30 individual bills aimed at many of which passed the House with bipartisan support earlier this Congress. The package, as announced in a release Monday, reflects an agreement between House Financial Services Committee Chairman Jeb Hensarling, R-Texas, and Ranking Member Maxine Waters, D-Calif., and includes 32 measures previously approved by the House or the Financial Services Committee, many with strong bipartisan support. This bipartisan legislation contains numerous commonsense solutions that improve the regulatory environment for startups, investors, and financial firms that will spur job creation and economic growth. 7*16*18 .....
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Argument opposed

While many of these bills may be worthwhile, the House shouldn’t bundle them together for the Senate’s consideration. They should be considered individually even if it takes the Senate more time to do so.

Laura's Opinion
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07/17/2018
Nope. This sounds like what we had prior to the recessions and prior to the former Dodd-Frank law. Obviously, Congress doesn’t remember history.
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Damon's Opinion
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07/17/2018
Gutting regulations doesn’t help create jobs! It helps corporations bully employees, make even more money that will be stashed in off shore accounts to avoid taxes, and destroy the environment!!!
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IllWill's Opinion
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07/17/2018
Calling this a jobs act is absurd. I don’t think most of these bills will help create any jobs. Some of these bills look good, but others are not and they should not all be bundled into a single piece of legislation. Separate them out and consider them all separately.
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What is Senate Bill S. 488?

This bill — the JOBS and Investor Confidence Act of 2018 or JOBS Act 3.0 — would aim to ease regulations for startups, investors, and financial institutions. It’d serve as the legislative vehicle for more than 30 individual bills aimed at many of which passed the House with bipartisan support earlier this Congress. A breakdown of its various provisions can be found below.

Helping Angels Lead Our Startups (HALOS): This section would make it easier for startup businesses to attract investments from angel investors under the Security and Exchange Commission’s (SEC) Regulation D. It’d allow small companies looking to raise funds by selling equity or debt securities from advertising requirements at pitch events sponsored by angel investor groups that meet certain criteria. The HALOS Act passed the House on a 344-73 vote in January 2017.

Crowdfunding: This section would allow Special Purpose Vehicles (SPVs) to be authorized investors in crowdfunding offerings, which enable a group of investors to pool their resources to invest in startups. It’d also raise the Exchange Act’s cap from $50 million to $75 million for startups with reported revenues, and from $20 to $50 million for companies that don’t yet have revenue.

Small Business Mergers & Acquisitions Simplification: This section would exempt merger and acquisition brokers and their associates from registration requirements if their gross earnings are less than $250 million. This legislation passed the House on a 425-0 vote in December 2017.

Financial Institution Living Will Improvement: This section would codify into law current regulatory practices that require large financial institutions to submit resolution plans (aka living wills) to the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve every two years. Living wills describe a bank’s strategy for a rapid and orderly resolution if the bank experiences financial distress or fails. The bill would also require the FDIC and Federal Reserve to provide additional feedback to firms about their living wills, and to publicly disclose the framework they use to assess the living wills. The Financial Institution Living Will Improvement Act passed the House on a 414-0 vote in January 2018.

Alleviating Stress Test Burdens: This section would exempt financial institutions whose primary financial regulator isn’t a federal banking agency or the Federal Housing Financial Agency from Dodd-Frank stress test requirements. The Alleviating Stress Test Burdens Act, which included this provision but is more wide-ranging, passed the House on a 395-19 vote in March 2018.

End Banking for Human Traffickers:  This section would require the Federal Financial Institutions Examination Council to review and enhance where necessary anti-money laundering programs targeting human trafficking operations and refer potential cases to appropriate law enforcement agencies. The State Department would be required to report on efforts to eliminate money laundering related to human trafficking and the number of investigations, arrests, indictments, and convictions in money laundering cases related to human trafficking. The End Banking for Human Traffickers Act of 2018 passed the House on a 408-2 vote in April 2018.

Cooperate with Law Enforcement Agencies: This section would provide a safe harbor for financial institutions that maintain a customer account at the request of a federal or state law enforcement agency. Currently, under the Bank Secrecy Act and anti-money laundering regulations, banks face strict rules for managing accounts so that they cannot facilitate money laundering, terrorism, drug-running, and other illegal activities. The Cooperate with Law Enforcement Agencies and Watch Act passed the House on a 379-4 vote in June 2018.

Main Street Growth: This section would provide for the creation and registration of venture exchanges with the SEC. Venture exchanges would be prohibited from extending Unlisted Trading Privileges to any venture security, which would prevent venture securities from trading on exchanges other the the one it’s listed on. Venture exchanges would also be exempt from decimalization. The House passed the Main Street Growth Act on a voice vote in July 2018.

Options Market Stability: This section would require the Federal Reserve, the Office of the Comptroller of the Currency, and the FDIC to issue rules adopting a methodology for calculating counterparty risk exposure, at default, of a financial institution under risk-based and leveraged-based capital rules. The regulators would have to consider 10 items in the process, including the availability of liquidity, the economic value of delta weighting and netting of positions, the safety and soundness of financial institutions, and overall financial stability. The Options Market Stability Act passed the House on a 385-0 vote in July 2018.

Impact

Entrepreneurs; investors; startups; workers; financial regulators; and relevant law enforcement agencies.

Cost of Senate Bill S. 488

A CBO cost estimate is unavailable.

More Information

In-Depth: Sponsoring Rep. Jeb Hensarling (R-TX) introduced this legislation to send a package of 32 bills aimed at easing regulations for startups and investors which have or will pass the House with bipartisan support:

“Over the last several months, our committee has been working hard to put forth a number of capital-formation bills that are designed to breathe new life into markets that are suffocating under aging regulations. Thanks to the efforts of the Ranking Members and Members of the Committee on both sides of the aisle, we have a strong bipartisan package that will play an important role in sustaining long-term economic growth and global competitiveness.”

Original cosponsor Rep. Maxine Waters (D-CA) added:

“A stronger economy, more jobs for America’s families, and strong investor protections are top priorities for Committee Democrats. I want to thank the Chairman and the staff of the Committee on both sides of the aisle for the work that they have been doing, working together to live up to what we always say -- that we all support small businesses, their access to capital, and protecting investors. This is true bipartisanship we are witnessing today.”


Media:

Summary by Eric Revell

(Photo Credit: marchmeena / iStock)

AKA

JOBS and Investor Confidence Act of 2018

Official Title

To modernize U.S. markets and to promote capital formation, investor confidence, and economic growth, and for other purposes

bill Progress


  • Not enacted
    The President has not signed this bill
  • The house Passed July 17th, 2018
    Roll Call Vote 406 Yea / 4 Nay
  • The senate Passed September 11th, 2017
    Passed by Voice Vote
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
    IntroducedMarch 1st, 2017

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    More jobs! Sounds smart
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    Nope. This sounds like what we had prior to the recessions and prior to the former Dodd-Frank law. Obviously, Congress doesn’t remember history.
    Like (56)
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    Gutting regulations doesn’t help create jobs! It helps corporations bully employees, make even more money that will be stashed in off shore accounts to avoid taxes, and destroy the environment!!!
    Like (31)
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    Calling this a jobs act is absurd. I don’t think most of these bills will help create any jobs. Some of these bills look good, but others are not and they should not all be bundled into a single piece of legislation. Separate them out and consider them all separately.
    Like (18)
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    If the Repugnacants are pushing a business bill then you can bet the bill will screw poor and working class Americans
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    As soon as I see something referred to as a "Jobs Bill", I immediately suspect something sneaky is underway. Particularly when the word "jobs" doesn't appear anywhere else in the bill. So let's be honest. these are bills loosening regulations and mostly benefitting big investors and business. Might jobs result? Perhaps. Are these jobs going to be in the USA? That is not clear. It is also not clear to what extent provisions are included that may raise risk for naive investors. What is the definition of a startup? Can a huge corporation start a subsidiary that it defines as a startup that can then avoid regulation the larger corporation is subject to? What benefits accrue to the investors? I'm sick of bills that benefit corporations and rich investors and that have poison pills hidden in them that hurt the average worker. I'd want to see more detail than this to approve. And I'd love to see a bill that actually addresses jobs from the perspective of workers for a change. That would really be novel!
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    Trump removing financial regulations = BIG BUCKS FOR BILLIONAIRES and taxpayers footing the bill!
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    If you want to create jobs, a higher minimum wage, eliminating anti poaching rules, and improve benefits across the board. Deregulation doesn’t create jobs, it makes the wealthy wealthier. That’s it. It doesn’t trickle down, folks. Even the Reagan advisor who helped create the economic model admitted its a scam.
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    Representatives and Senators- While many of these bills are good, several of them are not. Specifically, exempting some financial institutions from Dodd-Frank Stress Tests. In the current economy, I believe that deregulation is risky and endangers our long term economic health. This kind of deregulation historically leads to economic depression. Please consider the bills separately to make wise decisions.
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    Yoo hoo, Senators Fischer and Sasse, no more voice votes I want to know where my representatives stand on issues.
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    There are several reasons why I cannot support this legislation. First and foremost, you cannot even tell the taxpayers how much it is going to cost us! Which is pretty sad since half of this legislation has already passed through the house! Second, your bundling of legislation has cost the law-abiding American citizen to compromise their constitutional rights in the past many of times. Third, you didn’t have them bundled in the house therefore, you shouldn’t expect the senate to have to deal with them like that either! So, much for “for the people, by the people”!!!!!!
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    New, bad laws shouldn’t be enacted simply because they were part of a package deal. There’s good and bad in here, and we should take the time to get rid of the bad. This affects people’s lives. Take the time.
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    Naw, man. We’ve done plenty to help the bankers and investors. We need to help workers. We cannot help workers by removing the regulations that protect them.
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    I don't trust it. And all these bills should be separated into 3 different bills just to be safe! We must remember the If the Repugnacants are pushing a business bill then you can bet the bill will screw poor and working class Americans
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    Law makers are going backwards in time. At least get creative about cheating the voters!
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    No bundling.
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    Remember 2008...,,,
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    Dismantling regulations set up in the wake of the bank failures seems like a bad idea.
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    There are too many involving deregulation of the banks. Keep the banks from running amock.
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    Each provision should be voted on separately. Looks like corporate welfare to me. No more passes for employers to abuse employees.
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