Wagner Delivers Remarks at Hearing on Reforms to Encourage Capital Formation and Investment Opportunities for All Americans
Washington,
April 19, 2023 -
Today, the House Financial Services Subcommittee on Capital Markets, led by Chairman Ann Wagner (MO-02), is holding a hearing entitled "A Roadmap for Growth: Reforms to Encourage Capital Formation and Investment Opportunities for All Americans."
Watch Chairman Wagner’s opening remarks here.
Read Chairman Wagner’s opening remarks as prepared for delivery:
“Thank you all for joining us today, as we bring our four-part capital formation series to a close.
“As I outlined in the previous three hearings I have held, small businesses are the backbone of our economy, and we must ensure that our markets are working efficiently and effectively to provide companies access to the capital they need to innovate, grow, and create jobs.
“To accomplish that goal, we must also ensure a regulatory framework that is streamlined and not overly burdensome. As we have heard throughout our capital formation hearings, a framework that fails to 'right size’ regulation will stifle innovation, limit wealth-creating opportunities for investors, and prevent small businesses from reaching their potential.
“Over the past several months, we have had the opportunity to hear from a range of experts and stakeholders on the ways in which Congress can help promote economic growth and investment.
“At our first hearing, we heard how our private markets have been reserved for the wealthiest Americans. Our witnesses also shared insights into the challenges entrepreneurs face when raising capital and identified some of the senseless regulations that limit their pool of investors. Their testimony proved the need for common-sense reforms that expand wealth-creating opportunities to Americans who have effectively been relegated to the sidelines.
“Our second hearing explored the critical role of small businesses and entrepreneurs in driving economic growth and job creation in the United States.
“We discussed several ways to reduce obstacles and our witnesses identified policies to promote capital formation for small businesses across the country. From this discussion, it became clear: Congress must do more to enhance the ways in which small businesses raise capital in our markets.
“At our third hearing, we focused on the role of public markets in promoting economic growth and investment. We found that many companies are delaying their initial public offerings IPOs or remaining private to avoid unreasonable regulatory and disclosure obligations.
“Witnesses also discussed their concerns with declining IPOs, a reduction in the number of publicly traded companies, and the impact of these trends on investors and the broader economy. Their testimony underscored the need for proposals that ‘right size’ regulation, making public markets more attractive without compromising investor protection.
“As we begin our final hearing, it is clear that these issues are deeply interconnected. Expanding investment opportunities for all Americans, improving access to capital for small businesses, and strengthening our public markets are all critical components of a healthy and vibrant economy.
“As we look ahead, there is much work to be done to ensure that our capital markets are functioning efficiently and effectively for all Americans. This includes supporting policies that promote investment, encourage innovation, and remove unnecessary regulatory burdens.
“Thank you again to my colleagues and today’s witnesses for joining me in this important undertaking. Your insights and contributions are invaluable, and I look forward to today's discussion.”
###
