Following a recent Subcommittee on Capital Markets hearing, the House Financial Services Committee is seeking public feedback on legislative proposals aimed at enhancing investor access and facilitating capital formation. The committee invites comments by March 31, 2025, via email to fsc119@mail.house.gov.
The committee is interested in insights on various topics related to capital access. Questions include identifying challenges companies face when raising capital and potential policy solutions. The effectiveness of the JOBS Act and suggestions for improvement are also under review. Alternative funding models such as revenue-based financing and tokenization are being considered, along with policies to support regional innovation hubs and emerging fund managers.
In terms of investor access, the committee questions whether the definition of an accredited investor should be updated beyond wealth or income measures. They also explore avenues for retail investors to responsibly access private markets and discuss expanding retirement investment options into private markets.
Regarding public markets, the committee seeks input on barriers preventing companies from going public in the U.S., challenges faced by small public companies, and evolving dynamics between private and public companies.
Technology's role in capital markets is another focus area. The committee examines how technology like AI and blockchain can aid in investment operations and expand market access.
During the hearing, several bills were discussed:
- H.R.__: Fair Investment Opportunities for Professional Experts Act (Chairman French Hill)
- H.R.__: Accredited Investor Definition Review Act (Rep. Bill Huizenga)
- H.R.__: Improving Access to Small Business Information Act (Rep. Young Kim)
- H.R.__: Small Entity Update Act (Rep. Ann Wagner)
- H.R.__: Equal Opportunity for All Investors Act of 2025 (Rep. Mike Flood)
Additional legislation covers topics such as securities registration statements, multi-class share disclosures, IPO underwriting costs, non-traditional capital formation opportunities, investor disclosures, startup growth support, crowdfunding enhancements, secondary trading market restoration, risk disclosure requirements, investment opportunity expansion, accredited investor criteria updates, and more.
The committee encourages public participation to refine these legislative efforts aimed at strengthening both public and private financial markets.