Bill > HR3323

This bill updates the definition of an "emerging growth company" (EGC) in two key securities laws to help startups grow more easily. Specifically, the bill raises the annual revenue threshold for EGC status from $1 billion to $3 billion, extending the period during which companies can enjoy certain regulatory exemptions from five years to ten years after their initial public offering (IPO). The legislation also removes an existing subparagraph in the definition, which likely simplifies the qualification process for emerging growth companies. These changes are intended to provide younger, smaller public companies with more flexibility and reduced compliance burdens under securities regulations, potentially making it easier for startups to access public capital markets and continue their growth trajectory. The bill amends both the Securities Act of 1933 and the Securities Exchange Act of 1934, making technical corrections to ensure consistent implementation of the new EGC definition across these important financial regulatory frameworks.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/3323/all-info