The Senate took up debate on the House version of the JOBS act once again Wednesday after an abortive attempt on Tuesday to strengthen consumer protections by amendment failed, with a planned vote on the bill canceled as a result.
Consumer advocates had attacked the bill, which passed the House last week with bipartisan support, saying that it rolled back measures to protect consumers, particularly when it came to crowdsourcing. State regulators were particularly critical of being denied the capability of policing companies looking for crowdsourced funding, although critics from the SEC to consumer organizations had harsh words for the bill.
As a result, when the bill advanced to the Senate, an attempt was made to amend the bill and restore some of the investor protections eliminated in the original bill. When the amendment failed, as did a second amendment looking to reauthorize the Import/Export Bank, Senate Majority Leader Harry Reid, D-Nev., pulled it and adjourned the session.
In addition, a hearing scheduled by the Senate Subcommittee on Securities, Insurance and Investment, "Examining Investor Risks in Crowdfunding," set for Wednesday morning, was canceled. The hearing would have brought testimony from Mercer Bullard, associate professor of law, the University of Mississippi; Nick Bhargava, cofounder of Motaavi, LLC; Dana Mauriello, cofounder of ProFounder; and A. Heath Abshure, commissioner of the Arkansas Securities Department.
