It has been nigh impossible to find out just what was in the amendments that the Senate passed last week. Recall that the original bill included provisions that would have (1) subjected Rule 506 private placements to state regulation and (2) more than doubled the thresholds to qualify accredited investors. However, today the Wall Street Journal reported in an opinion piece that these two provisions were removed from the bill by the amendments that were passed, but that none of us have been able to get to read. While it is never clear in the legislative process when a threat has truly been averted, I would like to thank all my readers who called or wrote their elected representatives to speak up for start-up companies and their angel investors. In an earlier piece, I had asked you to start howling with rage. I think you can stop that now. It may well be time to start celebrating!
John A. Myer is a corporate and securities lawyer with Myer Law PLLC in Seattle, Washington. This posting does not constitute legal advice.