WASHINGTON, D.C. – Congressman Robert Hurt (R-Virginia) today delivered the following statement during the House Committee on Financial Services Capital Markets and Government Sponsored Enterprises Subcommittee hearing:
[Watch Robert's opening statement by clicking above or HERE]
Robert Hurt Opening Statement Text
"Thank you, Mr. Chairman. Thank you for holding today's hearing – the second in the series exploring ideas for reducing barriers to capital formation and I thank each of the witnesses for being here today. One of the most important functions of this Committee is to promote initiatives to increase access to capital for our small businesses and startups.
"It is appropriate that the Capital Markets subcommittee will again lead the way on initiatives to increase capital access and promote economic growth after it championed the enactment of the JOBS Act in the last Congress. While the JOBS Act was an important step forward, these hearings show that more still needs to be done to ensure that we remove costly and unnecessary regulatory impediments that are restricting companies from accessing capital in the public and private markets.
"I especially look forward to testimony from our witnesses about the eXtensible Business Reporting Language, which was mandated by the SEC in 2009. Despite the SEC's intent of lowering the costs of capital for smaller companies and providing more efficient access to information for investors, this requirement has become another example of a regulation where the costs far outweigh any potential benefits. Companies expend tens of thousands of dollars or more complying with the regulation yet there is evidence that less than 10 percent of investors actually use XBRL, further diminishing its potential benefits.
"This is another example of an unnecessary and costly requirement that disincentivizes innovative companies from accessing the public markets. We must look at solutions to this issue and others to create a regulatory environment that is more efficient and conducive for long-term economic growth.
"I appreciate this Committee's continued focus on ensuring that our small businesses and startups have the ability to access the necessary capital in order to innovate, expand, and create the jobs that our communities need.
"I look forward to the testimony of our witnesses and thank you again for your appearance before the subcommittee today.
"Thank you, Mr. Chairman. I yield back the balance of my time."