The SEC Small Business Advocate Act of 2016 recently passed the Senate after passing the House, meaning it is ready to be signed by the outgoing President and made into law. According to the Crowd Fund Insider the “legislation creates a new office at the Securities and Exchange Commission to advocate on behalf of small business.” The ultimate goal is to give a voice to small business. As the article explains, “the majority of economic growth and job creation is driven by smaller businesses yet too frequently policy makers craft rules focusing on larger firms. These regulations can strangle growth and innovation as smaller businesses simply can not shoulder the burden, including the cost, to comply with short sighted rule-making.”
“The Advocate will submit an annual report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.”
The purpose of this legislation is simple: Represent small business in the SEC and promote deregulation to create more opportunities for smaller firms. As the Trump administration has consistently stated, too much regulation is the crux of the slow growth for our nation. Although this strengthens the government in some ways, creating a new office, it’s focus is to open the door for millions of small businesses.
Whether the position can be beneficial in the short term depends on the person selected. The success or failure of the position hinges on the person Donald Trump selects for it.