On Federal Preemption of State Securities Regulation and the Future of Capital Formation for Small Business - The Dawn of a New Era at the SEC

December 18, 2013 may well mark a historic turning point in the ability of a small business to effectively access capital in the private and public markets under the federal securities regulatory framework. On that day, the Commissioners of the U.S. Securities and Exchange Commission (SEC) met in open session and unanimously authorized the issuance of proposed rules intended to implement Title IV of the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") a provision widely labeled as "Regulation A+". As a result, a fierce and long overdue battle between the Commission and state regulators will ensue, in which the SEC is determined to reduce the burden of state regulation on capital formation, a burden falling disproportionately on small businesses, while state regulators seek to preserve their autonomy to review securities offerings at the state level.