Bill · S. 1357· Senate(119-S-1357)
SAFE Act
- Introduced
- 4/8/2025
- Last activity
- 4/8/2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Rick Scott
- Cosponsors
- - 4 - 0
- Introduced
- In Committee
What this bill would do
The SAFE Act aims to amend the Securities Exchange Act of 1934. It focuses on addressing the issuance of securities by Chinese entities. The bill requires issuers to disclose specific information regarding financial support from the Government of the People's Republic of China. It also requires disclosure of conditions attached to that support and the existence of Chinese Communist Party committees within the issuer. Additionally, it mandates disclosure regarding officers or directors with past or present positions in the Chinese Government or Communist Party.
Yes· 3 of 5
Does this make what the government does easier for the public to see?+6
The bill mandates new, detailed disclosures from issuers regarding foreign government influence.
Does this give people more protection from unfair business practices?+5
The bill enhances investor protection by providing transparency regarding foreign government influence and financial support.
Does this make patent and copyright rules fairer?+4
The bill requires disclosure of conditions related to the use of specific intellectual property.
The opposite
Would business owners be better off under this?-3
The bill imposes new, extensive disclosure and regulatory burdens on issuers.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Transparency Regarding Financial Support: Under Section 2(a)(11)(A), issuers must disclose if the Government of the People's Republic of China provided financial support such as subsidies, grants, or loans. This provides clarity on whether an entity is receiving direct government benefits.
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Clarity on Support Conditions: Section 2(a)(11)(B) requires the disclosure of conditions attached to government support, such as requirements related to exports, purchasing specific items, using certain intellectual property, or employing specific individuals. This helps people understand the potential strings attached to an entity's funding.
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Disclosure of Internal Party Structures: Section 2(a)(11)(C) requires issuers to disclose if there are Chinese Communist Party committees within the company, including which employees are on those committees and their roles.
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Information on Leadership Ties: Section 2(a)(11)(D) mandates the disclosure of information regarding officers or directors who hold or previously held positions with the Chinese Communist Party or the Government of the People's Republic of China, including their titles and locations.
Potential Negative Impacts for People
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New Regulatory Burdens for Issuers: Section 2(a)(11) imposes extensive new disclosure requirements that must be included in the initial listing and each annual report. This includes detailing financial support, specific conditions of that support, internal party committees, and the backgrounds of officers and directors.
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Mandatory Rule Changes: Section 2(b) requires the Securities and Exchange Commission to make necessary rule amendments within 180 days of the Act's enactment to accommodate these new requirements.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Improves Government Transparency+6Increases Federal Power+3
- Economy And Finance
- Improves Consumer Protection+5
- Education And Technology
- Improves Intellectual Property Fairness+4
- Demographic And Interest Groups
- Good For Business Owners-3
- National Security And Foreign Policy
- Improves International Trade+3
- 4/8/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 4 Cosponsors added.
- Introduced in Senate
Marsha BlackburnRepublican · Tennessee
Bill CassidyRepublican · Louisiana
Cindy Hyde-SmithRepublican · Mississippi
John KennedyRepublican · Louisiana