Encouraging Public Offerings Act of 2025

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Bill ID: 119/hr/3381
Last Updated: July 12, 2026

Sponsored by

Rep. Wagner, Ann [R-MO-2]

ID: W000812

Follow the money

The bill

Encouraging Public Offerings Act of 2025

HR. 3381, 119th Congress — read as touching Investment Banking & Securities.

The sponsor

Rep. Wagner, Ann [R-MO-2]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$230,109 raised

24 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

95% match to Project 2025

This bill's text tracks the "Financial Regulatory Agencies" section, p. 872-874 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

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

June 23, 2025

Introduced

Committee Review

Floor Action

Passed House

Senate Review

📍 Current Status

Next: Both chambers must agree on the same version of the bill.

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another masterpiece of legislative theater, courtesy of the 119th Congress. The "Encouraging Public Offerings Act of 2025" - because what we really need is more encouragement for companies to go public and fleece investors.

**Main Purpose & Objectives:** The bill's stated purpose is to expand the ability of companies to test the waters before going public, allowing them to gauge investor interest without committing to a full IPO. How quaint. The real objective? To make it easier for companies to hide their financials from prying eyes and sneak into the market with minimal scrutiny.

**Key Provisions & Changes to Existing Law:** The bill amends the Securities Act of 1933, allowing any issuer (not just emerging growth companies) to engage in oral or written communications with potential investors before filing a registration statement. Because who needs transparency when you can have secret handshakes and whispered promises? The bill also expands confidential review of draft registration statements, because what could possibly go wrong with letting companies hide their financials from the public?

**Affected Parties & Stakeholders:** The usual suspects: investment banks, venture capitalists, and corporate lawyers. They'll be the ones reaping the benefits of this "reform." Meanwhile, retail investors will be left in the dark, wondering why they're stuck with a worthless stock.

**Potential Impact & Implications:** This bill is a recipe for disaster. By allowing companies to hide their financials and secretly shop around for investors, we'll see more Enrons, more Theranos, and more Bernie Madoffs. The SEC will be powerless to stop it, thanks to the bill's cleverly crafted loopholes. And when the inevitable scandals erupt, Congress will feign surprise and outrage, all while taking credit for "encouraging public offerings."

In short, this bill is a cynical attempt to further enrich the already wealthy at the expense of unsuspecting investors. It's a symptom of a deeper disease: the corrupting influence of money in politics. So, by all means, let's encourage more public offerings - and watch as the wolves devour the sheep.

Diagnosis: Terminal stupidity, with a side of greed and corruption. Prognosis: Poor.

Related Topics

Elections & Voting RightsBanking & Financial Services
Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Wagner, Ann [R-MO-2]

Congress 119 • 2024 Election Cycle

Total Contributions
$230,109
22 donors
PACs
$0
Organizations
$5,809
Committees
$0
Individuals
$224,300

No PAC contributions found

1
OTOE MISSOURIA TRIBE
1 transaction
$3,300
2
DEMOCRACY ENGINE, INC., PAC
2 transactions
$2,500
3
WINRED
1 transaction
$9

No committee contributions found

1
SMITH, KENNETH
2 transactions
$26,400
2
WILHELM, MARK A MR.
1 transaction
$13,200
3
DRURY, TIM M.
1 transaction
$13,200
4
DANFORTH, JOHN C
1 transaction
$13,200
5
TRACY, RICHARD L. MR.
1 transaction
$13,200
6
RINEY, RODGER O. MR.
1 transaction
$13,200
7
O'CONNELL, JOHN T.
1 transaction
$13,200
8
GREWE, GARY
1 transaction
$13,200
9
HOLEKAMP, WILLIAM F
1 transaction
$13,200
10
NICHOLSON, PAM
1 transaction
$13,200
11
RATTS, VALERIE S
1 transaction
$13,200
12
HEBENSTREIT, JAMES B. MR.
1 transaction
$13,200
13
PFAUTCH, ROY MR.
1 transaction
$11,600
14
SCHULTE, STEVE
1 transaction
$7,900
15
SCHNUCK, CRAIG D
1 transaction
$6,800
16
BECKSTEAD, JOHN
1 transaction
$6,600
17
KAMPETER, MICHAEL
1 transaction
$6,600
18
QUALY, JOHN M.
1 transaction
$6,600
19
MURPHY, RICHARD
1 transaction
$6,600

Cosponsors & Their Campaign Finance

This bill has 2 cosponsors. Below are their top campaign contributors.

Rep. Meeks, Gregory W. [D-NY-5]

ID: M001137

Top Contributors

10

1
AGUA CALIENTE BAN OF CAHUILLA INDIANS
OrganizationPALM SPRINGS, CA
$3,300
Jul 19, 2023
2
AK-CHIN INDIAN COMMUNITY
OrganizationMARICOPA, AZ
$3,300
Mar 30, 2023
3
AK-CHIN INDIAN COMMUNITY
OrganizationMARICOPA, AZ
$2,500
Sep 30, 2024
4
CROWN, LESTER
N/A • RETIRED
IndividualCHICAGO, IL
$6,600
Jul 18, 2024
5
LIPPMAN, MARIE C.
IndividualMIAMI BEACH, FL
$5,000
Mar 7, 2023
6
CUKIERMAN, JORAM
CITADEL • FINANCE
IndividualSCARSDALE, NY
$3,300
Oct 28, 2024
7
SILVERMAN, DOUG
SENATOR INVESTMENT GROUP LP • MANAGING PARTNER
IndividualNEW YORK, NY
$3,300
Oct 22, 2024
8
SHAMAH, ALAN
FIT FOR LIFE LLC • BUSINESS EXECUTIVE
IndividualBROOKLYN, NY
$3,300
Oct 22, 2024
9
SHAMAH, JOSEPH
FIT FOR LIFE LLC • CO-FOUNDER & CEO
IndividualBROOKLYN, NY
$3,300
Oct 22, 2024
10
ARMSTRONG, BRIAN
COINBASE • CEO
IndividualSAN FRANCISCO, CA
$3,300
Aug 29, 2023

Rep. Sessions, Pete [R-TX-17]

ID: S000250

Top Contributors

10

1
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$5,000
May 16, 2024
2
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$5,000
Sep 12, 2023
3
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$3,300
Jun 17, 2024
4
POARCH BAND OF CREEK INDIANS
OrganizationATMORE, AL
$3,300
May 24, 2023
5
ALABAMA-COUSHATTA TRIBE
OrganizationLIVINGSTON, TX
$1,000
Sep 30, 2024
6
HOWARD, RONALD VANCE
BANKERS LIFE • MANAGEMENT
IndividualHUNTSVILLE, TX
$5,000
Mar 13, 2023
7
HOWARD, KAREN
ELEMENTS MASSAGE • MANAGEMENT
IndividualHUNTSVILLE, TX
$5,000
Mar 13, 2023
8
SINGH, PRITPAL
BETA SOFT SYSTEMS • MANAGEMENT
IndividualFREMONT, CA
$5,000
Jun 23, 2023
9
KAUR, MANJIT
SINGH SEMICONDUCTORS & SYSTEMS • MANAGEMENT
IndividualFREMONT, CA
$5,000
Jun 23, 2023
10
BEHRINGER, TODD
THE BEHRINGER GROUP, LLC • CONSTRUCTION
IndividualWOODWAY, TX
$3,400
Sep 1, 2023

Donor Network - Rep. Wagner, Ann [R-MO-2]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Loading...

Showing 52 nodes and 30 connections (51 secondary connections hidden)

Total contributions: $252,509

Top Donors - Rep. Wagner, Ann [R-MO-2]

Showing top 22 donors by contribution amount

3 Orgs19 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 3 helped.

  • Section 2 expands testing the waters to all issuers, and Section 3 allows confidential submission of draft registration statements for any issuer, reducing disclosure burdens and facilitating securities offerings, which benefits investment banks involved in underwriting and advisory services.

  • +Big Tech Platformsconfidence 0.80

    The amendments apply to any issuer, including large technology companies seeking to go public or issue new securities, making it easier for them to conduct offerings with less public disclosure, thus providing a benefit.

  • +Biotech & Researchconfidence 0.80

    Biotech firms frequently rely on public offerings for funding; the ability to test the waters and submit confidential draft registrations reduces market uncertainty and disclosure costs, providing a clear benefit.

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Rep. Wagner, Ann [R-MO-2])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HELPS

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Financial Regulatory Agencies

Very Strong
Vector: 66%
Pages: 872-874AI Enhanced

AI Analysis:

"HR 3381 directly implements Project 2025's goal of reducing regulatory barriers to capital formation by expanding testing-the-waters and confidential SEC review for all issuers, thereby encouraging IPOs and supporting entrepreneurial growth."

Key themes:capital formationIPO facilitationregulatory burden reductionSEC oversightinvestor access

— 840 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. H.R. 5480, Securities Act of 1933, Public Law No. 73-22, 73rd Congress, May 27, 1933, https://govtrackus. s3.amazonaws.com/legislink/pdf/stat/48/STATUTE-48-Pg74.pdf (accessed February 20, 2023). 2. H.R. 9323, Securities Exchange Act of 1934, Public Law No. 73-291, 73rd Congress, June 6, 1934, https:// govtrackus.s3.amazonaws.com/legislink/pdf/stat/48/STATUTE-48-Pg881a.pdf (accessed February 20, 2023). 3. Mark T. Uyeda, Commissioner, U.S. Securities and Exchange Commission, “Remarks at the 2022 Cato Summit on Financial Regulation,” November 17, 2022, https://www.sec.gov/news/speech/uyeda-remarks- cato-summit-financial-regulation-111722 (accessed February 20, 2023); Hester M. Peirce, Commissioner, U.S. Securities and Exchange Commission, “It’s Not Just Scope 3: Remarks at the American Enterprise Institute,” December 7, 2022, https://www.sec.gov/news/speech/peirce-remarks-american-enterprise-institute-120722 (accessed February 20, 2023); comment letter from David R. Burton to Vanessa A. Countryman, Secretary, Securities and Exchange Commission, “Re: The Enhancement and Standardization of Climate-Related Disclosures for Investors [File No. S7-10-2; Release No. 33-11042; RIN 3235-AM87],” June 17, 2022, https://www. sec.gov/comments/s7-10-22/s71022-20131980-302443.pdf (accessed February 20, 2023). 4. Size would probably be measured best by public float or the number of beneficial owners. 5. See David R. Burton, “Securities Disclosure Reform,” Heritage Foundation Backgrounder No. 3178, February 13, 2017, https://www.heritage.org/sites/default/files/2017-02/BG3178.pdf; David R. Burton, “Offering and Disclosure Reform,” Chapter 11 in Reframing Financial Regulation: Enhancing Stability and Protecting Consumers, ed. Hester Peirce and Benjamin Klutsey (Arlington, VA: Mercatus Center at George Mason University, 2016), pp. 277–315, https://www.mercatus.org/research/books/reframing-financial-regulation (accessed February 20, 2023); Andrew N. Vollmer, “Investor-Friendly Securities Reform to Increase Economic Growth,” Securities Regulation & Law Report, Bloomberg BNA, Vol. 49, June 5, 2017. 6. See, for example, David R. Burton, “Reforming the Securities and Exchange Commission,” Heritage Foundation Backgrounder No. 3378, January 30, 2019, https://www.heritage.org/sites/default/files/2019-01/ BG3378.pdf; Andrew N. Vollmer, “Testimony on Workforce Management Disclosures and Other SEC Issues,” submitted to the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, Committee on Financial Services, U.S. House of Representatives, December 6, 2022, https://www.congress.gov/117/ meeting/house/115227/witnesses/HHRG-117-BA16-Wstate-VollmerA-20221208.pdf (accessed February 20, 2023); David R. Burton, “Reforming FINRA,” Heritage Foundation Backgrounder No. 3181, February 1, 2017, https://www.heritage.org/sites/default/files/2017-02/BG3181.pdf; Hester Peirce, “The Financial Industry Regulatory Authority: Not Self-Regulation After All,” Mercatus Center at George Mason University Working Paper, January 2015, https://www.mercatus.org/research/working-papers/financial-industry-regulatory- authority-not-self-regulation-after-all (accessed February 20, 2023); Thaya Brook Knight, “Transparency and Accountability at the SEC and at FINRA,” Chapter 11 in Prosperity Unleashed: Smarter Financial Regulation, ed. Norbert J. Michel, (Washington: The Heritage Foundation, 2017) https://www.heritage.org/sites/default/ files/2017-02/11_ProsperityUnleashed_Chapter11.pdf. 7. Reorganization Plan No. 10 of 1950, U.S. Code Title 5—Appendix, Reorganization Plans, http://uscode.house. gov/view.xhtml?req=granuleid:USC-prelim-title5a-node84-leaf114&num=0&edition=prelim (accessed February 20, 2023). 8. The board or commission should evaluate the regulatory functions of the National Securities Exchanges, Registered Securities Future Product Exchanges, Registered Clearing Agencies (such as the Depository Trust Company (DTC), the National Securities Clearing Corporation (NSCC) and the Options Clearing Corporation (OCC)), the Municipal Securities Rulemaking Board (MSRB) and the National Futures Association (NFA). This board or commission should have a broad composition and permit minority reports. 9. Boyden Gray & Associates, Comments Submitted on Behalf of Alliance for Fair Board Recruitment Concerning the Nasdaq Stock Market LLC; Notice of Filing of Proposed Rule Change to Adopt Listing Rules Related to Board Diversity, Amendment No. 1, File No. SR-NASDAQ-2020-081, April 6, 2021 https://www.sec.gov/ comments/sr-nasdaq-2020-081/srnasdaq2020081-8639478-230941.pdf (accessed February 20, 2023); David R. Burton, “Nasdaq’s Proposed Board-Diversity Rule Is Immoral and Has No Basis in Economics,” Heritage Foundation Backgrounder No. 3591, March 9, 2021, https://www.heritage.org/sites/default/ files/2021-03/BG3591_0.pdf. The SEC is contemplating at least two rules that can be expected to require differential treatment based on race, sex, ethnicity, and so on. See Executive Office of the President, Office — 841 — Financial Regulatory Agencies of Management and Budget, Office of Information and Regulatory Affairs, “Fall 2022 Unified Agenda of Regulatory and Deregulatory Actions: Active Regulatory Actions Listed by Agency,” https://www.reginfo.gov/ public/do/eAgendaMain (accessed February 20, 2023); “Human Capital Management Disclosure,” RIN: 3235- AM88, https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202204&RIN=3235-AM88 (accessed February 20, 2023); “Corporate Board Diversity,” RIN: 3235-AL91, https://www.reginfo.gov/public/do/ eAgendaViewRule?pubId=202204&RIN=3235-AL91 (accessed February 20, 2023). 10. 15 U.S. Code § 77z–3, https://www.law.cornell.edu/uscode/text/15/77z-3 (accessed February 20, 2023); 15 U.S. Code § 78mm, https://www.law.cornell.edu/uscode/text/15/78mm (accessed February 20, 2023). 11. S. ___, Jumpstart Our Business Startups Act of 2022, discussion draft, 117th Congress, 2nd Session, https:// www.banking.senate.gov/imo/media/doc/the_jobs_act_4.0discussiondraft.pdf (accessed February 20, 2023); David R. Burton, “Entrepreneurial Capital Formation,” Testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, April 5, 2022, https://www.heritage.org/testimony/entrepreneurial- capital-formation; “Removing Barriers to Small Business Capital Formation and Expanding Investor Opportunities,” Section 6 in Nicholas Anthony, Norbert J. Michel, Jennifer J. Schulp, George Selgin, and Jack Solowey, “Sound Financial Policy: Principled Recommendations for the 118th Congress,” ed. Norbert J. Michel and Ann Rulon, Cato Institute, 2022, pp. 22–27, https://www.cato.org/sites/cato.org/files/2022-10/sound- financial-policy-118th-congress.pdf (accessed February 20, 2023); David R. Burton and Norbert J. Michel, Proposals to Foster Economic Growth and Capital Formation, Submission to Committee on Banking, Housing, and Urban Affairs, U.S. Senate, March 18, 2021, https://www.banking.senate.gov/imo/media/doc/David%20 Burton%20and%20Norbert%20Michel%20-%202021-3-18.pdf (accessed February 20, 2023); David R. Burton, “Improving Entrepreneurs’ Access to Capital: Vital for Economic Growth,” Heritage Foundation Backgrounder No. 3182, February 14, 2017, https://www.heritage.org/sites/default/files/2017-02/BG3182.pdf. 12. The small issues exemptive authority has been in the Securities Act since its initial enactment. 13. The crowdfunding exemption was created by Title III of the 2012 JOBS Act. See H.R. 3606, Jumpstart Our Business Startups Act, Public Law No. 112-106, 112th Congress, April 5, 2021, Title III, § 302, https://www. govinfo.gov/content/pkg/PLAW-112publ106/pdf/PLAW-112publ106.pdf (accessed February 20, 2023). 14. Burton, “Improving Entrepreneurs’ Access to Capital: Vital for Economic Growth”; Rutheford B. Campbell Jr., “The Case for Federal Pre-Emption of State Blue Sky Laws,” Chapter 6 in Prosperity Unleashed: Smarter Financial Regulation, https://www.heritage.org/sites/default/files/2017-02/06_ProsperityUnleashed_ Chapter06.pdf. 15. Andrew N. Vollmer, “Abandon the Concept of Accredited Investors in Private Securities Offerings,” Securities Regulation Law Journal, Vol. 49, No. 5 (Spring 2021), https://papers.ssrn.com/sol3/papers.cfm?abstract_ id=3719280 (accessed February 20, 2023); Thaya Brook Knight, “Your Money’s No Good Here: How Restrictions on Private Securities Offerings Harm Investors,” Cato Institute Policy Analysis No. 833, February 9, 2018, https:// www.cato.org/sites/cato.org/files/pubs/pdf/pa833.pdf (accessed February 20, 2023); David R. Burton, “Congress Should Increase Access to Private Securities Offerings,” Heritage Foundation Issue Brief No. 4899, August 29, 2018, https://www.heritage.org/sites/default/files/2018-08/IB4899.pdf; Andrew N. Vollmer, “Evidence on the Use of Disclosure Documents in Private Securities Offerings to Accredited Investors,” Mercatus Center at George Mason University Working Paper, October 22, 2020, https://www.mercatus.org/publications/financial-regulation/ evidence-use-disclosure-documents-private-securities-offerings-0 (accessed February 20, 2023). 16. For a detailed discussion, see “Micro-Offerings,” Section IId in Burton and Michel, Proposals to Foster Economic Growth and Capital Formation, pp. 15–17. 17. David R. Burton, “Let Entrepreneurs Raise Capital Using Finders and Private Placement Brokers,” Heritage Foundation Backgrounder No. 3328, July 10, 2018, https://www.heritage.org/sites/default/files/2018-07/ BG3328.pdf; Andrew N. Vollmer, “Make It Easy for Startups to Sell Stock,” Mercatus Center at George Mason University Discourse, September 21, 2020, https://www.mercatus.org/bridge/commentary/make-it-easy- startups-sell-stock (accessed February 20, 2023). 18. See H.R. 531, S-Corp Access to Crowdfunding Act, 115th Congress, introduced January 13, 2017, https://www. govinfo.gov/content/pkg/BILLS-115hr531ih/pdf/BILLS-115hr531ih.pdf (accessed February 20, 2023); David Burton, “The Tax Law Makes It Almost Impossible for ‘S Corporations’ to Use Equity Crowdfunding,” The Daily Signal, April 19, 2016, https://www.dailysignal.com/2016/04/19/the-tax-law-makes-it-almost-impossible-for- s-corporations-to-use-equity-crowdfunding/.

Trade

Strong
Vector: 67%
Pages: 863-865AI Enhanced

AI Analysis:

"HR 3381 aligns with Project 2025's goal of reducing regulatory barriers to capital formation by expanding access to pre-IPO communications and confidential SEC review, which supports broader investor participation and streamlines the public offering process—consistent with democratizing access to private markets and easing regulatory burdens."

Key themes:capital formationregulatory reliefinvestor accessSEC modernizationIPO facilitation

— 831 — Financial Regulatory Agencies l Either democratize access to private offerings by broadening the definition of accredited investor for purposes of Regulation D or eliminate the accredited investor restriction altogether.15 l Allow traditional self-certification of accredited investor status for all Regulation D Rule 506 offerings. l Exempt small micro-offerings from registration requirements.16 l Exempt small and intermittent finders from broker–dealer registration requirements and provide a simplified registration process for private placement brokers.17 l Exempt peer-to-peer lending from federal and state securities laws and reduce the regulatory burden on Regulation CF debt securities. l Make the Title I Emerging Growth Company (EGC) exemptions permanent for all EGCs. l Reduce the regulatory burden on small broker–dealers and exempt privately held, non-custodial broker–dealers from the requirements to use a PCAOB- registered firm for their audits. Congress should: l Amend the Internal Revenue Code to disregard crowdfunding and Regulation A shareholders for purposes of the 100-shareholder limit for Subchapter S corporations.18 BETTER CAPITAL MARKETS To improve capital markets, the SEC should: l Preempt blue sky registration, qualification, and continuing reporting requirements for securities traded on established securities markets (including a national securities exchange or an alternative trading system).19 l Terminate the Consolidated Audit Trail (CAT) program.20 l Abolish Rule 144 and other regulations that restrict securities resales and instead require a company that has sold securities to provide sufficient current informa- tion to the market to permit reasonable investment decisions and secondary sales. — 832 — Mandate for Leadership: The Conservative Promise Congress should: l Prohibit the SEC from requiring issuer disclosure of social, ideological, political, or “human capital” information that is not material to investors’ financial, economic, or pecuniary risks or returns. The proposed SEC climate change rule, which would quadruple the costs of being a public company, is particularly problematic.21 l Repeal the Dodd–Frank mandated disclosures relating to conflict minerals, mine safety, resource extraction, and CEO pay ratios.22 l Oppose efforts to redefine the purpose of business in the name of social justice; corporate social responsibility (CSR); stakeholder theory; environmental, social, and governance (ESG) criteria; socially responsible investing (SRI); sustainability; diversity; business ethics; or common- good capitalism. l Prohibit securities regulators, including SROs, from promulgating rules or taking other actions that discriminate, either favorably or unfavorably, on the basis of the race, color, religion, sex, or national origin of such individual or group. SEC ADMINISTRATION To enable it to achieve its core mission more effectively, the SEC should:23 l Publish better data on securities offerings, securities markets, and securities law enforcement and publish an annual data book of time series data on these matters. Specifically, the SEC Division of Economic and Risk Analysis (DERA) needs to do a much better job of collecting and reporting fundamental data regarding offerings, regulatory costs, violations, enforcement, investors, state regulator taxes, fees and activities, and other matters. l Ensure that SEC resources flow toward its core functions and away from ancillary and support functions or from missions that do not fall within the SEC’s statutory charge. l Ensure that any three SEC Commissioners are empowered to place an item on the agenda and to receive adequate staff support to do so even without the Chairman’s support.

Trade

Strong
Vector: 62%
Pages: 863-865AI Enhanced

AI Analysis:

"HR 3381 aligns closely with Project 2025's goal of reducing regulatory impediments to capital formation by expanding pre-filing communications and confidential SEC review for all issuers, not just emerging growth companies. This supports the policy's emphasis on streamlining securities regulations to improve access to capital markets while maintaining oversight."

Key themes:capital formationregulatory burden reductionSEC reformIPO facilitationdisclosure flexibility

— 830 — Mandate for Leadership: The Conservative Promise l Three basic categories of firm: private firms, an intermediate category of smaller firms,4 and public firms; l Reasonable, scaled disclosure requirements; and l Specified secondary markets for the securities of these firms.5 The SEC needs to be reformed to achieve its important core functions more effectively, to improve transparency and due process, and to reduce unnecessary regulatory impediments to capital formation.6 Under current law, the SEC Chair- man has the authority to make almost all of the necessary changes.7 Unfortunately, financial regulators, particularly the SEC and the Financial Industry Regulatory Authority (FINRA), are poorly managed and organized. With regulatory authority delegated by the government, both the Public Company Accounting Oversight Board (PCAOB) and FINRA have proved to be ineffective, costly, opaque, and largely impervious to reform. To reduce costs and improve transparency, due process, congressional oversight, and responsiveness, PCAOB and FINRA should be abolished, and their regulatory functions should be merged into the SEC. Furthermore, Congress should establish an indepen- dent board or commission and charge it with producing a detailed report within 18 months that examines the degree to which the regulatory functions of the var- ious other so-called self-regulatory organizations (SROs), which are no longer self-regulatory in any meaningful sense, should be moved to the SEC.8 Discrimination based on immutable characteristics has no place in financial regulation. Offices at financial regulators that promote racist policies (usually in the name of “diversity, equity, and inclusion”) should be abolished, and regulations that require appointments on the basis of race, ethnicity, sex, or sexual orientation should be eliminated. Equal protection of the law, equal opportunity, and individ- ual merit should govern regulatory decisions.9 Congress has given the SEC broad “general exemptive authority,”10 but the SEC has used this authority only rarely. It should use this authority significantly more often to reduce the regulatory burden on issuers, particularly smaller entrepreneurs. ENTREPRENEURIAL CAPITAL FORMATION Financial regulators should remove regulatory impediments to entrepreneur- ial capital formation.11 In the absence of the fundamental reform outlined above, the SEC should: l Simplify and streamline Regulation A (the small issues exemption)12 and Regulation CF (crowdfunding)13 and preempt blue sky registration and quali- fication requirements for all primary and secondary Regulation A offerings.14 — 831 — Financial Regulatory Agencies l Either democratize access to private offerings by broadening the definition of accredited investor for purposes of Regulation D or eliminate the accredited investor restriction altogether.15 l Allow traditional self-certification of accredited investor status for all Regulation D Rule 506 offerings. l Exempt small micro-offerings from registration requirements.16 l Exempt small and intermittent finders from broker–dealer registration requirements and provide a simplified registration process for private placement brokers.17 l Exempt peer-to-peer lending from federal and state securities laws and reduce the regulatory burden on Regulation CF debt securities. l Make the Title I Emerging Growth Company (EGC) exemptions permanent for all EGCs. l Reduce the regulatory burden on small broker–dealers and exempt privately held, non-custodial broker–dealers from the requirements to use a PCAOB- registered firm for their audits. Congress should: l Amend the Internal Revenue Code to disregard crowdfunding and Regulation A shareholders for purposes of the 100-shareholder limit for Subchapter S corporations.18 BETTER CAPITAL MARKETS To improve capital markets, the SEC should: l Preempt blue sky registration, qualification, and continuing reporting requirements for securities traded on established securities markets (including a national securities exchange or an alternative trading system).19 l Terminate the Consolidated Audit Trail (CAT) program.20 l Abolish Rule 144 and other regulations that restrict securities resales and instead require a company that has sold securities to provide sufficient current informa- tion to the market to permit reasonable investment decisions and secondary sales.

Showing 3 of 5 policy matches

About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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