Press Releases

House Financial Services Committee Reports Capital Formation, CFPB Reform Legislation to Full House for Consideration

Washington, April 26, 2023 -

Today, Committee Republicans reported 14 legislative proposals out of Committee that strengthen public markets, help small businesses and entrepreneurs, and create opportunities for all investors. Lawmakers passed an additional measure that brings accountability and transparency to the Consumer Financial Protection Bureau (CFPB). 

More information on all 15 bills recently reported out of the Financial Services Committee can be found below:

H.R. 835, the Fair Investment Opportunities for Professional Experts Act, sponsored by Rep. Hill, would expand the accredited investor definition, thereby increasing the pool of investors for small and emerging companies in need of capital—especially minority entrepreneurs who often struggle to secure funding—and providing more Americans with additional investment opportunities.

H.R. 1579, the Accredited Investor Definition Review Act, sponsored by Rep. Huizenga, would update the list of certifications that an investor must satisfy to qualify as an accredited investor to ensure that all Americans have an opportunity to participate in the growth and success of our economy.

H.R. 1548, the Improving Access to Small Business Information Act, sponsored by Rep. Kim, would allow the SEC’s Advocate for Small Business Capital Formation to become a more impactful voice in support of American entrepreneurs and capital formation by enabling the Advocate to engage with American small businesses with less friction.

H.R. 2792, the Small Entity Update Act, sponsored by Rep. Wagner, would direct the SEC to assess regulatory costs of compliance for small and growing businesses, ensuring that regulations placed on these businesses are not overly burdensome.

H.R. 2797, the Equal Opportunity for All Investors Act, sponsored by Rep. Flood, would increase the number of pathways to qualify as an accredited investor by instituting a test administered by FINRA, allowing sophisticated-but-not-wealthy individuals to access high-growth asset classes that would not otherwise be available to them.

H.R. 2793, the Encouraging Public Offerings Act of 2023, sponsored by Rep. Wagner, would allow all issuers to submit a confidential draft registration statement for review prior to going public  and would permit any issuer to “test the waters” and gauge investor interest prior to filing. 

H.R. 2610a bill to amend the Securities Exchange Act of 1934 to specify certain registration statement contents for emerging growth companies, to permit issuers to file draft registration statements with the Securities and Exchange Commission for confidential review, and for other purposes, sponsored by Chairman McHenry, would equalize the “Emerging Growth Company (EGC)” financial statement accommodations enacted under the JOBS Act of 2012 whether an EGC is conducting an IPO or spinning off a portion of its business and taking that company public, thereby facilitating efficiency and capital formation without sacrificing investor protection.

H.R. 2608a bill to amend the Federal securities laws to specify the periods for which financial statements are required to be provided by an emerging growth company, and for other purposes, sponsored by Chairman McHenry, would clarify that the scaled financial reporting obligations for an “Emerging Growth Company (EGC)” enacted by the JOBS Act of 2012 remain available both when an EGC acquires another company and in follow-on offerings for a company that lost its EGC status during IPO registration, which will eliminate an irregularity in the law’s application and will increase the attractiveness of going public for smaller companies.

H.R. 1807, the Improving Disclosure for Investors Act of 2023, sponsored by Rep. Huizenga, would modernize the way investors receive disclosures in the digital age, increasing positive investor engagement and reducing the environmental impact of disposed paper.  

H.R. 2795, the Enhancing Multi-Class Share Disclosures Act, sponsored by Rep. Meeks, would ensure shareholders receive more uniform information in proxy materials without prohibiting multi-class share structures altogether.  

H.R. 2593, the Senior Security Act, sponsored by Rep. Gottheimer, would create a task force to protect seniors from falling victim to fraud and abuse in our capital markets.

H.R. 2812, the Middle Market IPO Underwriting Cost Act, sponsored by Rep. Himes, would allow Congress to better understand the costs incurred by small and medium-sized companies associated with going public. 

H.R. 2796thPromoting Opportunities for Non-Traditional Capital Formation Act, sponsored by Rep. Waters, would empower underrepresented and rural small business owners to learn about capital formation opportunities.

H.R. 2799, the Expanding Access to Capital Act, sponsored by Chairman McHenry, would enhance capital formation opportunities by strengthening public markets, helping small businesses and entrepreneurs access capital, and creating opportunities for all investors.

H.R. 2798, the CFPB Transparency and Accountability Reform Act, sponsored by Rep. Barr, would reform the Bureau’s leadership structure, subject the agency to regular appropriations, and create an independent Inspector General for the CFPB.

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