Bill · H.R. 3135· House(119-HR-3135)
RACE Act of 2025
- Introduced
- 5/1/2025
- Last activity
- 5/1/2025 — Referred to the House Committee on Financial Services.
- Sponsored by
- Andy Barr
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the "Regulation Advancement for Capital Enhancement Act of 2025" or the "RACE Act of 2025," seeks to amend the Securities Act of 1933. It focuses on the automatic qualification of offering statements filed with the SEC. This applies to certain securities issued under Regulation A tier 2. Specifically, it allows for the automatic qualification of additional classes of securities if they are substantially similar to a previously qualified class. This is subject to specific dollar limits on individual and aggregate offerings.
Yes· 3 of 4
Does this make it easier to run a small business?+5
The bill provides greater flexibility and efficiency for businesses seeking to issue additional classes of securities under Regulation A.
Would business owners be better off under this?+5
Business owners benefit from a faster, more efficient process for issuing similar classes of securities without repeated SEC qualifications.
Is this likely to create jobs?+3
The bill facilitates easier access to capital by streamlining the qualification process for new classes of securities.
The opposite
Does this make what the government does easier for the public to see?-2
The automatic qualification of securities upon filing reduces the level of active Commission review for subsequent offerings.
Who it would affect, and how
Potential Positive Impacts for People
-
Automatic Qualification of Similar Securities: Under Section 2, if a person has already had an offering statement qualified by the Commission, subsequent offering statements for additional classes of securities can be deemed qualified upon filing. This happens if the new securities are substantially similar to the original class and meet specific financial criteria.
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Flexibility in Security Types: Section 2(A)(ii) notes that a security can be considered substantially similar to another without having the same nature or terms, providing more flexibility for issuers.
Potential Negative Impacts for People
- Specific Financial Limits: Section 2(A)(ii) and (iii) place constraints on this process, requiring that each additional class of securities must be less than $5,000,000 and that the aggregate amount of all such additional classes within a 12-month period cannot exceed the limit provided for the aggregate offering amount under paragraph (2).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+5Improves Economic Growth+3Increases Job Creation+3
- Demographic And Interest Groups
- Good For Business Owners+5
- Governance And Ideology
- Improves Government Transparency-2
- 5/1/2025
- Referred to the House Committee on Financial Services.
- Introduced in House