The Increasing Investor Opportunities Act of 2025, or Invest Act (HR 3383), was approved by the US House of Representatives yesterday, with 302 in favor and 123 opposed. Eight Representatives did not vote.
This legislation may completely reform the definition of an Accredited Investor, which is currently a discriminatory rule that is based on a wealth metric, which disenfranchises the vast majority of the US population. The rule is mainly utilized to determine who may invest in private securities offerings issued under Regulation D (Reg D 506b and 506c). Reg D is a trillion-dollar market that is used by many of the most promising early-stage firms to raise growth capital.
Changes to the definition will include any person who has demonstrable education or job experience to qualify, as well as an examination, thus creating a more rational path for individuals with sufficient sophistication to participate in these offerings.
Other aspects of the bill aim to improve access to capital, improve the lagging IPO market, better representation for smaller firms, and more.
The bill garnered significant bipartisan support, with 87 Democrats voting for it and all Republicans voting in favor. The vote roster indicates that 123 Democrats voted against the bill, with the most extreme members, such as Representatives Alexandria Ocasio-Cortez, Ilhan Omar, and Pramila Jayapal, seeking to defeat the legislation.
The Invest Act now moves over to the Senate for its review. The legislation stands a good chance of being signed into law, as Republicans remain in control of the Senate.
