Thursday, December 11, 2025, at the U.S. Capitol in Washington, DC.
Daniel Heuer | Bloomberg | Getty Images
Private markets could see an influx of capital and investors under a bill approved by the House of Representatives on Thursday.
A series of capital formation bills, known as the Investment Act, passed the House of Representatives by a vote of 302 to 123. Eighty-seven Democrats joined all Republicans in the House of Representatives in supporting the bill.
The far-reaching bill would give more investors access to private markets. Lawmakers argue that the measure will encourage more companies to go public and encourage capital formation for startups.
Rather than relying solely on assets and income to determine who can become an accredited investor, investors could become accredited by taking an exam approved by the Securities and Exchange Commission.
House Financial Services Committee Chairman French Hill (R-Ark.) said the bill was needed in part because of the decline in the number of publicly traded companies in the United States.
“We will make it easier for companies to become publicly traded companies in the United States,” Hill said on the House floor during debate on the bill. ”
“If you have a great idea, we make it easy to crowdsource it and raise money from friends and family. We also make it easy for individual investors to access other investment opportunities.”
The bill would also remove caps on the amount of money venture capital firms can raise and the number of people they can invest in before they become subject to stricter disclosure and compliance regulations.
The bill would increase the number of investors from 250 to 500 and funding from $10 million to $50 million.
It will also be easier for venture capital firms to invest in each other. Lawmakers said the change would allow more money to reach businesses in places like the Midwest and South.
Rep. Bill Huizenga (R-Mich.) said unicorns — privately held startups valued at more than $1 billion — were once rare. There is currently a “herd of unicorns” that limits investment opportunities for the public, he said.
“We’re trying to make sure this is open and accessible to people. I think that would be a healthier approach for both the public and private markets,” Huizenga said.
The bill is now in the Senate, and facilitating capital formation is on Banking Committee Chairman Tim Scott’s to-do list.
It is unclear whether the Senate will adopt the House version, make individual changes to parts of it, or seek to introduce its own version.
