Leaders of the United States House Financial Services Committee published a statement following House passage of the INVEST Act, a bipartisan bill positioned as updating securities laws to expand small business access to capital, broaden investor participation in private offerings, and strengthen U.S. public markets. The package would direct the Securities and Exchange Commission to adjust the definition of a “small entity” and require future SEC rulemakings to consider impacts on small businesses, while increasing thresholds for qualifying venture capital funds and clarifying what constitutes a qualifying investment. It would also modernize the “accredited investor” definition so education, professional credentials and experience can help determine eligibility to invest in private offerings, expand investment flexibility for certain retirement plans, and increase safeguards and resources to combat financial fraud and exploitation. For public markets, the bill would streamline disclosure requirements and modernize how companies can test investor interest before an initial public offering, against a backdrop the committee described as a decline in publicly traded U.S. companies from 8,800 in 1997 to fewer than 4,000.
U.S. Financial Services Committee 2025-12-12
United States House Financial Services Committee promotes House-passed INVEST Act to modernize securities laws
The U.S. House Financial Services Committee passed the INVEST Act to update securities laws, enhancing small business capital access and investor participation in private offerings. The Act mandates the SEC to redefine "small entity," adjust venture capital fund thresholds, and modernize "accredited investor" criteria. It also aims to streamline public market disclosures and improve safeguards against financial fraud.