The Financial CHOICE Act of 2017: Proposed Sweeping Changes to Capital-Raising and Financial Regulatory Landscapes
The Financial Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs (CHOICE) Act of 2017 is a bill aimed at comprehensively changing the Jumpstart Our Business Startups (JOBS) Act, the Dodd-Frank Wall Street Reform and Consumer Protection (Dodd-Frank) Act, and other financial regulatory laws.
The bill was passed by the House and has now advanced to the Senate, which will determine its fate.
This special report discusses how progress made by JOBS Act and Dodd-Frank rulemaking could be undermined by Senate passage of the CHOICE Act. It examines the value of focusing on easier access to capital for smaller companies — especially given the significant decrease in the number of IPOs in the U.S. over the last two decades — and on U.S. financial stability.
However, it also spotlights potential concerns with the manner in which the CHOICE Act proposes to ease smaller company access to capital and lessen regulatory compliance costs associated with eliminating speculative and other risky behavior by financial institutions. Additionally, the special report exposes the far-reaching negative effects these proposals could have on the JOBS Act and Dodd-Frank.