U.S. House Financial Services Committee requests public feedback on bills to expand investor access and facilitate capital formation

The U.S. House Financial Services Committee has opened a public feedback process on capital formation and investor access, following a Subcommittee on Capital Markets hearing on strengthening public and private markets. The Committee is seeking views on both market challenges and a slate of legislative proposals discussed at the hearing. The request for input covers barriers to raising capital and potential policy solutions, the effectiveness and potential improvements to the JOBS Act, and the role of alternative funding models such as revenue-based financing, tokenization and secondary markets. It also asks about modernising the accredited investor definition, pathways for retail and retirement-plan participation in private markets, obstacles to going public and challenges faced by smaller public companies, and how technology including artificial intelligence and blockchain is being used in capital raising, due diligence and reporting. Bills reviewed span areas including accredited investor eligibility, emerging growth company registration and financial statement requirements including confidential SEC review of draft filings, disclosure changes for multi-class shares, auditor requirements for newly public companies, revisions to reporting-company and filer thresholds, and updates to Regulation A+ and crowdfunding frameworks. Comments are due by March 31, 2025.