On March 8, 2024, the House of Representatives passed the Expanding Access to Capital Act, H.R. 2799, which we had previously posted on the blog.

There were several amendments to the Act, including the following:

  • An amendment that clarifies the definition of “general solicitation” and “angel investor” for purposes of the federal securities laws to address “demo day” communications;
  • An amendment that directs the Securities and Exchange Commission to promulgate rules with respect to the electronic delivery of certain required disclosures to investors;
  • An amendment that would amend federal securities laws to allow 403(b) plans to invest in collective investment trusts (CITs) and insurance contracts that currently may be invested in by comparable retirement plans, such as 401(k)s; and
  • An amendment that allows a closed-end investment company to invest its assets in securities issued by private funds.

While the chances of passage in the Senate may be low, there may be important and significant components that could garner bipartisan support as they would promote capital formation in the public and the private markets, help small business, and benefit investors.  The final text of the bill is not yet available.  See the House press release