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Mandate for Leadership: The Conservative Promise
ENDNOTES
1. H.R. 5480, Securities Act of 1933, Public Law No. 73-22, 73rd Congress, May 27, 1933, https://govtrackus.
s3.amazonaws.com/legislink/pdf/stat/48/STATUTE-48-Pg74.pdf (accessed February 20, 2023).
2. H.R. 9323, Securities Exchange Act of 1934, Public Law No. 73-291, 73rd Congress, June 6, 1934, https://
govtrackus.s3.amazonaws.com/legislink/pdf/stat/48/STATUTE-48-Pg881a.pdf (accessed February 20, 2023).
3. Mark T. Uyeda, Commissioner, U.S. Securities and Exchange Commission, “Remarks at the 2022 Cato
Summit on Financial Regulation,” November 17, 2022, https://www.sec.gov/news/speech/uyeda-remarks-
cato-summit-financial-regulation-111722 (accessed February 20, 2023); Hester M. Peirce, Commissioner, U.S.
Securities and Exchange Commission, “It’s Not Just Scope 3: Remarks at the American Enterprise Institute,”
December 7, 2022, https://www.sec.gov/news/speech/peirce-remarks-american-enterprise-institute-120722
(accessed February 20, 2023); comment letter from David R. Burton to Vanessa A. Countryman, Secretary,
Securities and Exchange Commission, “Re: The Enhancement and Standardization of Climate-Related
Disclosures for Investors [File No. S7-10-2; Release No. 33-11042; RIN 3235-AM87],” June 17, 2022, https://www.
sec.gov/comments/s7-10-22/s71022-20131980-302443.pdf (accessed February 20, 2023).
4. Size would probably be measured best by public float or the number of beneficial owners.
5. See David R. Burton, “Securities Disclosure Reform,” Heritage Foundation Backgrounder No. 3178, February
13, 2017, https://www.heritage.org/sites/default/files/2017-02/BG3178.pdf; David R. Burton, “Offering and
Disclosure Reform,” Chapter 11 in Reframing Financial Regulation: Enhancing Stability and Protecting
Consumers, ed. Hester Peirce and Benjamin Klutsey (Arlington, VA: Mercatus Center at George Mason
University, 2016), pp. 277–315, https://www.mercatus.org/research/books/reframing-financial-regulation
(accessed February 20, 2023); Andrew N. Vollmer, “Investor-Friendly Securities Reform to Increase Economic
Growth,” Securities Regulation & Law Report, Bloomberg BNA, Vol. 49, June 5, 2017.
6. See, for example, David R. Burton, “Reforming the Securities and Exchange Commission,” Heritage
Foundation Backgrounder No. 3378, January 30, 2019, https://www.heritage.org/sites/default/files/2019-01/
BG3378.pdf; Andrew N. Vollmer, “Testimony on Workforce Management Disclosures and Other SEC Issues,”
submitted to the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, Committee
on Financial Services, U.S. House of Representatives, December 6, 2022, https://www.congress.gov/117/
meeting/house/115227/witnesses/HHRG-117-BA16-Wstate-VollmerA-20221208.pdf (accessed February 20,
2023); David R. Burton, “Reforming FINRA,” Heritage Foundation Backgrounder No. 3181, February 1, 2017,
https://www.heritage.org/sites/default/files/2017-02/BG3181.pdf; Hester Peirce, “The Financial Industry
Regulatory Authority: Not Self-Regulation After All,” Mercatus Center at George Mason University Working
Paper, January 2015, https://www.mercatus.org/research/working-papers/financial-industry-regulatory-
authority-not-self-regulation-after-all (accessed February 20, 2023); Thaya Brook Knight, “Transparency and
Accountability at the SEC and at FINRA,” Chapter 11 in Prosperity Unleashed: Smarter Financial Regulation,
ed. Norbert J. Michel, (Washington: The Heritage Foundation, 2017) https://www.heritage.org/sites/default/
files/2017-02/11_ProsperityUnleashed_Chapter11.pdf.
7. Reorganization Plan No. 10 of 1950, U.S. Code Title 5—Appendix, Reorganization Plans, http://uscode.house.
gov/view.xhtml?req=granuleid:USC-prelim-title5a-node84-leaf114&num=0&edition=prelim (accessed
February 20, 2023).
8. The board or commission should evaluate the regulatory functions of the National Securities Exchanges,
Registered Securities Future Product Exchanges, Registered Clearing Agencies (such as the Depository Trust
Company (DTC), the National Securities Clearing Corporation (NSCC) and the Options Clearing Corporation
(OCC)), the Municipal Securities Rulemaking Board (MSRB) and the National Futures Association (NFA). This
board or commission should have a broad composition and permit minority reports.
9. Boyden Gray & Associates, Comments Submitted on Behalf of Alliance for Fair Board Recruitment Concerning
the Nasdaq Stock Market LLC; Notice of Filing of Proposed Rule Change to Adopt Listing Rules Related
to Board Diversity, Amendment No. 1, File No. SR-NASDAQ-2020-081, April 6, 2021 https://www.sec.gov/
comments/sr-nasdaq-2020-081/srnasdaq2020081-8639478-230941.pdf (accessed February 20, 2023);
David R. Burton, “Nasdaq’s Proposed Board-Diversity Rule Is Immoral and Has No Basis in Economics,”
Heritage Foundation Backgrounder No. 3591, March 9, 2021, https://www.heritage.org/sites/default/
files/2021-03/BG3591_0.pdf. The SEC is contemplating at least two rules that can be expected to require
differential treatment based on race, sex, ethnicity, and so on. See Executive Office of the President, Office
— 841 —
Financial Regulatory Agencies
of Management and Budget, Office of Information and Regulatory Affairs, “Fall 2022 Unified Agenda of
Regulatory and Deregulatory Actions: Active Regulatory Actions Listed by Agency,” https://www.reginfo.gov/
public/do/eAgendaMain (accessed February 20, 2023); “Human Capital Management Disclosure,” RIN: 3235-
AM88, https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202204&RIN=3235-AM88 (accessed
February 20, 2023); “Corporate Board Diversity,” RIN: 3235-AL91, https://www.reginfo.gov/public/do/
eAgendaViewRule?pubId=202204&RIN=3235-AL91 (accessed February 20, 2023).
10. 15 U.S. Code § 77z–3, https://www.law.cornell.edu/uscode/text/15/77z-3 (accessed February 20, 2023); 15 U.S.
Code § 78mm, https://www.law.cornell.edu/uscode/text/15/78mm (accessed February 20, 2023).
11. S. ___, Jumpstart Our Business Startups Act of 2022, discussion draft, 117th Congress, 2nd Session, https://
www.banking.senate.gov/imo/media/doc/the_jobs_act_4.0discussiondraft.pdf (accessed February 20,
2023); David R. Burton, “Entrepreneurial Capital Formation,” Testimony before the Committee on Banking,
Housing, and Urban Affairs, U.S. Senate, April 5, 2022, https://www.heritage.org/testimony/entrepreneurial-
capital-formation; “Removing Barriers to Small Business Capital Formation and Expanding Investor
Opportunities,” Section 6 in Nicholas Anthony, Norbert J. Michel, Jennifer J. Schulp, George Selgin, and Jack
Solowey, “Sound Financial Policy: Principled Recommendations for the 118th Congress,” ed. Norbert J. Michel
and Ann Rulon, Cato Institute, 2022, pp. 22–27, https://www.cato.org/sites/cato.org/files/2022-10/sound-
financial-policy-118th-congress.pdf (accessed February 20, 2023); David R. Burton and Norbert J. Michel,
Proposals to Foster Economic Growth and Capital Formation, Submission to Committee on Banking, Housing,
and Urban Affairs, U.S. Senate, March 18, 2021, https://www.banking.senate.gov/imo/media/doc/David%20
Burton%20and%20Norbert%20Michel%20-%202021-3-18.pdf (accessed February 20, 2023); David R. Burton,
“Improving Entrepreneurs’ Access to Capital: Vital for Economic Growth,” Heritage Foundation Backgrounder
No. 3182, February 14, 2017, https://www.heritage.org/sites/default/files/2017-02/BG3182.pdf.
12. The small issues exemptive authority has been in the Securities Act since its initial enactment.
13. The crowdfunding exemption was created by Title III of the 2012 JOBS Act. See H.R. 3606, Jumpstart Our
Business Startups Act, Public Law No. 112-106, 112th Congress, April 5, 2021, Title III, § 302, https://www.
govinfo.gov/content/pkg/PLAW-112publ106/pdf/PLAW-112publ106.pdf (accessed February 20, 2023).
14. Burton, “Improving Entrepreneurs’ Access to Capital: Vital for Economic Growth”; Rutheford B. Campbell
Jr., “The Case for Federal Pre-Emption of State Blue Sky Laws,” Chapter 6 in Prosperity Unleashed: Smarter
Financial Regulation, https://www.heritage.org/sites/default/files/2017-02/06_ProsperityUnleashed_
Chapter06.pdf.
15. Andrew N. Vollmer, “Abandon the Concept of Accredited Investors in Private Securities Offerings,” Securities
Regulation Law Journal, Vol. 49, No. 5 (Spring 2021), https://papers.ssrn.com/sol3/papers.cfm?abstract_
id=3719280 (accessed February 20, 2023); Thaya Brook Knight, “Your Money’s No Good Here: How Restrictions
on Private Securities Offerings Harm Investors,” Cato Institute Policy Analysis No. 833, February 9, 2018, https://
www.cato.org/sites/cato.org/files/pubs/pdf/pa833.pdf (accessed February 20, 2023); David R. Burton, “Congress
Should Increase Access to Private Securities Offerings,” Heritage Foundation Issue Brief No. 4899, August 29,
2018, https://www.heritage.org/sites/default/files/2018-08/IB4899.pdf; Andrew N. Vollmer, “Evidence on the
Use of Disclosure Documents in Private Securities Offerings to Accredited Investors,” Mercatus Center at George
Mason University Working Paper, October 22, 2020, https://www.mercatus.org/publications/financial-regulation/
evidence-use-disclosure-documents-private-securities-offerings-0 (accessed February 20, 2023).
16. For a detailed discussion, see “Micro-Offerings,” Section IId in Burton and Michel, Proposals to Foster
Economic Growth and Capital Formation, pp. 15–17.
17. David R. Burton, “Let Entrepreneurs Raise Capital Using Finders and Private Placement Brokers,” Heritage
Foundation Backgrounder No. 3328, July 10, 2018, https://www.heritage.org/sites/default/files/2018-07/
BG3328.pdf; Andrew N. Vollmer, “Make It Easy for Startups to Sell Stock,” Mercatus Center at George Mason
University Discourse, September 21, 2020, https://www.mercatus.org/bridge/commentary/make-it-easy-
startups-sell-stock (accessed February 20, 2023).
18. See H.R. 531, S-Corp Access to Crowdfunding Act, 115th Congress, introduced January 13, 2017, https://www.
govinfo.gov/content/pkg/BILLS-115hr531ih/pdf/BILLS-115hr531ih.pdf (accessed February 20, 2023); David
Burton, “The Tax Law Makes It Almost Impossible for ‘S Corporations’ to Use Equity Crowdfunding,” The Daily
Signal, April 19, 2016, https://www.dailysignal.com/2016/04/19/the-tax-law-makes-it-almost-impossible-for-
s-corporations-to-use-equity-crowdfunding/.