U.S. House Committee on Financial Services Chairman French Hill and Representative Juan Vargas introduced the Fair Investment Opportunities for Professional Experts Act (H.R. 3394), which would expand the definition of an accredited investor to include individuals who can demonstrate education, professional experience, or similar credentials, widening eligibility to invest in private offerings. The proposal is positioned as shifting access away from a primarily wealth-based test and toward a knowledge-and-experience standard, with the stated aim of expanding investment opportunities for capable investors while supporting small businesses’ ability to raise capital. The committee release notes that many small companies rely on private markets due to the costs and barriers of U.S. public markets, where offerings are typically limited to accredited investors under a definition that focuses on financial status; it also notes Hill has introduced similar legislation in prior Congresses.
U.S. Financial Services Committee 2025-05-15
U.S. House Committee on Financial Services introduces bipartisan bill to broaden accredited investor access to private offerings
The U.S. House Committee on Financial Services introduced the Fair Investment Opportunities for Professional Experts Act (H.R. 3394) to broaden the definition of an accredited investor. The bill shifts eligibility from a wealth-based to a knowledge-and-experience standard, enhancing investment access for qualified individuals and aiding small businesses in capital raising. The proposal addresses limitations of the current financial status-focused definition in private markets.