President Obama will reportedly name former attorney general for the Southern District of New York, Mary Jo White, to the top spot at the Securities and Exchange Commission (SEC). Technology startups have been eager for the SEC to approval rules for “crowdfunding” (raising capital from family, friends, and other non-accredited investors) but the process was stalled by a mini-scandal with the former SEC boss and her subsequent departure.
As the lead prosecutor of mob boss John Gotti, White breaks tradition with predecessors as a financial outsider, perhaps making her more likely to aggressively pursue Wall Street misconduct. Unfortunately, it also means we don’t know much about her views on crowdfunding.
Early last year, it was revealed that former SEC chairman, Mary Schapiro, stalled the implementation of crowdfunding, as mandated by the overwhelmingly popular JOBs Act, for fear that it would harm her legacy.
This is what we've been waiting for. It is a sign that we can finally move forward on enacting the JOBs Act.
We don't really know where she stands on the crowdfunding side, so we'll need to get her to answer those questions as soon as possible. We'll let her enjoy her day today, and then the tough questions will begin.