Recently, the House of Representatives passed six bipartisan bills emanating from the House Financial Services Committee.
These bills, which will now move over to the Senate will improve access to capital, help smaller invsetors and more.
When the House Financial Services Committee was controlled by Democrats, there was more focus on investor protection and social programs. With the Republicans in control, there is a greater focus on supporting smaller businesses and assisting investors – including smaller ones.
The legislation is as follows:
H.R. 3394 – Fair Investment Opportunities for Professional Experts Act, sponsored by Chairman French Hill (AR-02), passed the House by a bipartisan vote of 397-12. H.R. 3394 expands the definition of “accredited investor” under the Securities Act of 1933 to include individuals with certain licenses, education, or job experience, beyond just those meeting wealth and income thresholds.
H.R. 3301 – ELEVATE Act of 2025, sponsored by Rep. Zach Nunn (IA-03), unanimously passed the House by voice vote. H.R. 3301 clarifies that an emerging growth company (EGC) may present two years, rather than three years, of audited financial statements in both initial public offerings (IPOs) and spin-off transactions. This expands the JOBS Act accommodation currently limited to IPOs.
H.R. 3381 – Encouraging Public Offerings Act of 2025, sponsored by Capital Markets Subcommittee Chairman Ann Wagner (MO-02), unanimously passed the House by voice vote. H.R. 3381 codifies SEC Rule 163B, allowing all issuers—not just EGCs—to “test the waters” with potential investors and to submit confidential draft registration statements to the SEC prior to public filing. It also shortens the public filing window before effectiveness to 10 days.
H.R. 1190 – Expanding Access to Capital for Rural Job Creators Act, sponsored by Rep. Troy Downing (MT-02), unanimously passed the House by voice vote. H.R. 1190 amends the Securities Exchange Act of 1934 to require the Securities and Exchange Commission’s (SEC) Advocate for Small Business Capital Formation to include rural small businesses among the categories it monitors for capital access challenges.
H.R. 2225 – Access to Small Business Investor Capital Act, sponsored by Rep. Brad Sherman (CA-32), unanimously passed the House by voice vote. H.R. 2225 allows a registered investment company to exclude from the calculation of “acquired fund fees and expenses” (AFFE) those incurred indirectly through investment in a business development company (BDC).
H.R. 3352 – HALOS Act of 2025, sponsored by Rep. Mike Lawler (NY-17), unanimously passed the House by voice vote. H.R. 3352 codifies SEC Rule 148 to ensure that communications made at certain “demo day” events do not constitute general solicitation under federal securities laws. The bill also defines “angel investor group” and clarifies the types of sponsors and conditions under which issuers may present without triggering offering restrictions.
H.R. 3422 – Promoting Opportunities for Non-Traditional Capital Formation Act, sponsored by Ranking Member Maxine Waters (CA-43), passed the House by a bipartisan vote of 321-87. H.R. 3422 requires the SEC’s Advocate for Small Business Capital Formation to provide educational resources and host events that promote capital-raising options for traditionally underrepresented small businesses and businesses in rural areas.