The Federalist Society

The SEC’s Inglorious Role in Limiting Small Business’s Access to Capital

July 3, 2008

Rutherford B. Campbell, Jr.

One of the most curious and misdirected regulatory approaches of the Securities and Exchange Commission (SEC) is the Commission’s relentless refusal to permit small corporations to solicit broadly for external capital. The Commission has over time been ably assisted in this unfortunate approach by state blue sky laws and state securities regulators. As a result, small businesses, which are vital to our national economy and otherwise face enormous structural impediments when they compete for external capital, are further disadvantaged by burdensome, inefficient, and anti-competitive governmental regulatory schemes....

The SEC's Inglorious Role in Limiting Small Business's Access to Capital  


The Federalist Society