2 versions

CosmeticWhat changed in REPORTED IN HOUSEcompared with INTRODUCED IN HOUSE (May 13, 2025)

Technical corrections only. The reported version (v2) of H.R. 3348 is identical in substantive text to the introduced version (v1), with the only change being the formatting of the bill's content in italic, indicating it was reported with an amendment that replaced the original text with itself. No substantive policy changes were made between the two versions.

H.R. 3348119th CongressIntroduced May 13, 2025

Accredited Investor Definition Review Act

Reported To HouseFinance and Financial SectorMajor

View bill text

Sponsor: Rep. Huizenga, Bill [R-MI-4]
Committees: Financial Services Committee (primary)
Last action: Jun 4, 2025

This analysis was written for v1 (INTRODUCED IN HOUSE, May 13, 2025). REPORTED IN HOUSE changed too little to need its own, so it reuses that one rather than a rewrite. The differences between the two are summarized above. View v1

Bottom line

This bill broadens who qualifies as an "accredited investor" by adding professional certifications as a criterion, aiming to allow more financially sophisticated individuals to participate in private securities offerings.

What it actually does

This bill amends the Securities Act of 1933 to expand the definition of an "accredited investor" to include individuals who hold certain professional certifications, designations, or credentials as determined by the Securities and Exchange Commission (SEC). It also mandates that the SEC periodically review and update this list of qualifying credentials to ensure it remains current and inclusive.

Proponents argue

Proponents argue that the current definition of "accredited investor," primarily based on income and net worth, is outdated and unfairly excludes financially sophisticated individuals who do not meet arbitrary wealth thresholds. They contend that professional certifications demonstrate sufficient knowledge and experience to understand the risks of private investments, thereby democratizing access to capital markets for a broader range of investors and fostering capital formation.

Opponents contend

Opponents might argue that expanding the definition beyond wealth thresholds could expose less affluent investors to higher risks associated with private markets, which lack the same regulatory protections as public markets. They may contend that professional certifications alone do not guarantee the ability to absorb potential losses, and that the primary purpose of the accredited investor definition is robust investor protection.

The bill text is very short and can be read quickly, allowing ample time for stakeholders to understand its provisions and implications.

Section 2, amending Section 2(a)(15) of the Securities Act of 1933

Expansion of Accredited Investor Definition to Include Professional Certifications

prominently featuredstraightforward

This provision amends the Securities Act of 1933 to allow individuals holding specific professional certifications, designations, or credentials, as determined by the Securities and Exchange Commission (SEC), to qualify as accredited investors. It explicitly requires the SEC's list to include those professional certifications already designated in an October 2020 SEC order and mandates that the criteria for establishing new credentials be no less broad than those used in the 2020 final rule on the Accredited Investor Definition.

GroupImpactMechanismScale

GroupIndividuals with professional financial certifications (e.g., Series 7, Series 65, Series 82 licenses)ImpactGain eligibility to participate in private securities offerings, expanding investment opportunities.MechanismStatutory amendment to the definition of "accredited investor" in federal securities law.ScalePotentially hundreds of thousands of individuals nationwide.

GroupCompanies seeking private capital (e.g., startups, small businesses)ImpactExpanded pool of potential investors, potentially increasing access to capital.MechanismBroader definition of accredited investor leading to more eligible investors.ScaleModerate increase in available capital for private offerings.

GroupSecurities and Exchange Commission (SEC)ImpactMandated to maintain and update a list of qualifying professional credentials.MechanismNew regulatory responsibility to define and manage accredited investor criteria.ScaleMinor administrative burden.

Supporters argue

Supporters argue this provision modernizes the accredited investor definition by recognizing financial sophistication beyond wealth, allowing more knowledgeable individuals to access private markets and fostering capital formation for growing businesses.

Critics contend

Critics may argue that professional certifications, while indicating knowledge, do not necessarily equate to the financial capacity to absorb losses inherent in private investments, potentially exposing more individuals to risk in less regulated markets.

Tradeoffs

The provision balances the goal of expanding access to private investment opportunities for financially sophisticated individuals against the risk of exposing investors with lower net worth to less regulated markets.

Section 3, amending Section 413(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act

Mandated Periodic Review and Update of Accredited Investor Credentials

prominently featuredstraightforward

This section amends the Dodd-Frank Act to require the SEC to review and update its list of qualifying certifications, designations, and credentials for accredited investor status. This review must occur within 18 months of the bill's enactment and at least every five years thereafter. The SEC is directed to add credentials that are "substantially similar" in measuring financial sophistication and to adjust the list as deemed necessary for public interest or investor protection.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

CosmeticWhat changed in REPORTED IN HOUSEcompared with INTRODUCED IN HOUSE (May 13, 2025)

H.R. 3348119th CongressIntroduced May 13, 2025

Accredited Investor Definition Review Act

Reported To HouseFinance and Financial SectorMajor

View bill text

Sponsor: Rep. Huizenga, Bill [R-MI-4]
Committees: Financial Services Committee (primary)
Last action: Jun 4, 2025

Bottom line

What it actually does

Proponents argue

Opponents contend

The bill text is very short and can be read quickly, allowing ample time for stakeholders to understand its provisions and implications.

Section 2, amending Section 2(a)(15) of the Securities Act of 1933

Expansion of Accredited Investor Definition to Include Professional Certifications

prominently featuredstraightforward

GroupImpactMechanismScale

Supporters argue

Critics contend

Tradeoffs

Section 3, amending Section 413(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act

Mandated Periodic Review and Update of Accredited Investor Credentials

prominently featuredstraightforward