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Bill117th CongressFiled Jun 29, 2021Finance and Financial Sector
H.R. 4227

To require the Securities and Exchange Commission to revise the definition of a qualifying investment to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940, and for other purposes.

Bill journey · stage 2 of 5

Under committee review

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Law

What it doesSummary passed house (Jul 26, 2022)

Developing and Empowering our Aspiring Leaders Act of 2022

This bill directs the Securities and Exchange Commission (SEC) to revise venture capital investment regulations if the SEC determines such revisions would facilitate capital formation without compromising investor protection. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Under current law, non-qualifying investments—which include secondary transactions and investments in other venture capital funds—may comprise up to 20% of a venture capital fund.

The bill allows, after SEC approval, investments acquired through secondary transactions or investments in other venture capital funds to be considered as qualifying investments for venture capital funds. However, for a private fund to qualify as a venture capital fund, the fund's investments must predominately be acquired directly from a qualifying portfolio company.

What just happenedJul 27, 2022

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Who’s behind it

Rep. Hollingsworth, Trey [R-IN-9](R-IN)Sponsor
Read on Congress.gov
2committees11actions1related bills4subjects
  1. Jul 27, 2022IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

    Banking, Housing, and Urban Affairs Committee
  2. Jul 26, 2022FloorH38800

    The title of the measure was amended. Agreed to without objection.

  3. Jul 26, 2022FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  4. Jul 26, 2022FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H7152)

  5. Jul 26, 2022Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H7152)

  6. Jul 26, 2022FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 4227.

  7. Jul 26, 2022FloorH30000

    Considered under suspension of the rules. (consideration: CR H7152-7153)

  8. Jul 26, 2022FloorH30300

    Ms. Waters moved to suspend the rules and pass the bill, as amended.

  9. Jun 29, 2021IntroReferralH11100

    Referred to the House Committee on Financial Services.

    Financial Services Committee
  10. Jun 29, 2021IntroReferralIntro-H

    Introduced in House

  11. Jun 29, 2021IntroReferral1000

    Introduced in House

Passed HouseJul 26, 202253

Developing and Empowering our Aspiring Leaders Act of 2022

This bill directs the Securities and Exchange Commission (SEC) to revise venture capital investment regulations if the SEC determines such revisions would facilitate capital formation without compromising investor protection. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Under current law, non-qualifying investments—which include secondary transactions and investments in other venture capital funds—may comprise up to 20% of a venture capital fund.

The bill allows, after SEC approval, investments acquired through secondary transactions or investments in other venture capital funds to be considered as qualifying investments for venture capital funds. However, for a private fund to qualify as a venture capital fund, the fund's investments must predominately be acquired directly from a qualifying portfolio company.

Introduced in HouseJun 29, 2021

Developing and Empowering our Aspiring Leaders Act of 2021

This bill directs the Securities and Exchange Commission to revise venture capital investment regulations. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Under current law, non-qualifying investments—which include secondary transactions and investments in other venture capital funds—may comprise up to 20% of a venture capital fund.

The bill allows investments acquired through secondary transactions or investments in other venture capital funds to be considered as qualifying investments for venture capital funds. However, for a private fund to qualify as a venture capital fund, the fund's investments must predominately (1) be acquired directly, or (2) be investments in other venture capital funds.

To require the Securities and Exchange Commission to revise the definition of a qualifying… — Informed