The U.S. House Financial Services Committee released Capital Markets Subcommittee Chair Ann Wagner’s prepared opening remarks for a hearing on capital formation, setting out a reform agenda focused on strengthening public and private markets by expanding investment opportunities and reducing regulatory barriers to raising capital. Wagner argued that the current definition of “accredited investor” is overly restrictive because it largely limits private-market participation to high-net-worth individuals, excluding financially knowledgeable investors who do not meet wealth thresholds. She also pointed to declining bank loan approval rates for small businesses and called for expanding access to private markets and streamlining requirements for raising private capital, while maintaining investor protections and avoiding outcomes that limit market access or push companies overseas. The remarks positioned these reforms as building on the JOBS Act of 2012 and referenced Acting SEC Chair Uyeda’s view that policy should encourage companies’ ability to raise capital. After the hearing, the committee intends to request feedback from stakeholders on legislative proposals aimed at strengthening U.S. capital markets, including input from investors, entrepreneurs, small businesses, and other market participants.
U.S. Financial Services Committee 2025-02-26
U.S. House Financial Services Committee holds capital formation hearing and plans stakeholder feedback on proposals to expand investor access
The U.S. House Financial Services Committee released Capital Markets Subcommittee Chair Ann Wagner’s remarks advocating for reforms to strengthen markets by expanding investment opportunities and reducing regulatory barriers. Wagner criticized the restrictive "accredited investor" definition and called for expanded private market access and streamlined capital-raising requirements, while maintaining investor protections. The committee plans to seek stakeholder feedback on legislative proposals to enhance U.S. capital markets.