Under pressure from Republicans to ease restrictions on businesses, Securities and Exchange Commission Chairman Mary Schapiro said Tuesday that the agency will weigh carefully weigh investors’ and companies’ interests during a review of stock-offering rules that could impact private technology companies like Facebook and Twitter.
The SEC is currently reviewing two rules: one requiring financial disclosures from private companies with 500 or more shareholders; and another that prohibits closely held companies from advertising their shares. The review comes as House Republicans pressure the SEC to ease the restrictions, which they say hold back economic growth and job creation, The Wall Street Journal reports.
Oversight Chairman Rep. Darrell Issa, R-Calif. said such rules make it “increasingly difficult” for companies to raise capital, as they are not keen on making such lengthy financial disclosures.
"While we have an important responsibility to facilitate growing companies' access to America's investment capital, we must balance that responsibility with our obligation to protect investors and our markets," Schapiro said when she appeared before the House Oversight Committee on Tuesday.