The Small Entrepreneurs Empowerment and Development Act of 2025, or SEED Act (HR 4171), heads to a markup hearing this week at the House Financial Services Committee.
The SEED Act aims to create a micro-exemption that allows firms to raise up to $250,000 over a 12-month period.
Sponsored by Representative Andrew Garbarino, the legislation amends the Securities Act of 1933 to provide small issuers with an exemption from mandated disclosures and offering filings, subject to the anti-fraud provisions of the federal securities laws.
If the bill becomes law, the Securities and Exchange Commission must adopt rules within 270 days of enactment.
The goal is to remove barriers for firms raising money from their network without onerous regulatory oversight. The concept has been discussed for years, with opponents concerned about the potential for fraud without mandated disclosures.
The exemption would likely compete with Reg CF, an exemption that requires a notice filing, but frequently supports smaller funding rounds for smaller issuers.
The markup hearing will take place on January 22, 2026 beginning at 10AM ET.
