The House Oversight and Government Reform Committee wants to change current private trading rules to help more companies go public and bring more capital to those companies, said Rep. Daniel Issa, its chairman.
"In the 1980s a $15 million, $16 million company with a bright future might be able to go public. Today a $100 million business with good profits is unlikely to be able to go public because it represents $2 million or $3 million of their profit disappearing just for compliance," the California Republican told CNBC Tuesday.
The committee meets today to discuss changing the rules and "allow small businesses [to] have an opportunity to get medium-sized investors," Issa said. The committee plans to work with SEC Chairman Mary Schapiro, who will testify at the hearing, to update the rules.