What Legislative Role Do States Play When it Comes to Disruptive Technologies?
July 11, 2019
In this segment, Vincent Russo, Partner, Robbins Ross Alloy Belinfante Littlefield LLC explains how states serve as laboratories of democracy in helping Congress shape their policies regarding new disruptive technologies. Vince underscores the integral role that state crowdfunding laws had in helping shape federal crowdfunding laws.
DA: That is incredible, 60 days, even when you compare that to how long it took not only to actually pass the Jobs Act, but to implement the crowdfunding rules. We’re talking 60 days compared to years.
VR: You’re right. I think crowdfunding regulation wasn't implemented until 2016.
DA: IGE has really helped set new precedents, even on a federal level, because federal legislators were able to see what was happening on a state level and they were able to see what was and what wasn’t working on a state level so that they could amend the federal legislation, which it wasn't working quite as well as they wanted it to. So there were even later iterations of the Jobs Act being introduced that look a little bit more like IGE than the original crowdfunding bill and the original Jobs Act.
VR: I think it's a mentality around the regulation. It's a balance of how much regulation needs to be in place to protect the people. Overregulation we all know stymies business and there are so many good businesses out there that would love to do an offering, our full-blend public offering. But the costs to do that would put them out of business before they even get started. You have to have regulations in a way that still provide the necessary protections while allowing the business piece to work.