The “Accredited Investor Definition Review Act,” HR 3348, has been approved by the House Financial Services Committee in a 36-16 vote.
Representative Bill Huizenga, the bill’s sponsor, outlined its goals in an X.
“Accredited investors are currently defined by the SEC based on their income and their net worth, not whether they can actually understand financial markets or have demonstrated greater sophistication or expertise or understand the risk. …My bill, the Accredited Investor Definition Review Act would require the SEC to incorporate additional ‘certifications, designations, or credentials that further the purpose of the accredited investor definition.'”
The legislation was part of a long list of bills impacting capital markets going through a markup hearing today.
Another bill, addressing the definition of an Accredited Investor, the Equal Opportunity for All Investors Act of 2025, HR 3339, was also overwhelmingly approved by 49-2.
Sponsored by Representative Mike Flood, he commented:
“Wealth is not a particularly strong judge of whether someone should be an accredited investor or not. A better one is whether someone has the knowledge to accurately weigh the benefits and risks of private offerings.”
HR 3394 was also approved with a vote of 45-1. The Fair Investment Opportunities for Professional Experts Act updates the definition by including individuals with specific licenses, qualifying education, or job experience. Chairman of the Committee, French Hill, sponsored this bill.
Other bills impacting capital formation are going through markup in a meeting that is scheduled to end tomorrow.
As for the definition of an Accredited Investor, the current rule has long been discriminatory and thus is virtually assured to be changed.