Bill > HR4130

This bill amends the Securities Exchange Act of 1934 to modify the mandatory registration threshold for securities. Specifically, when calculating the number of security holders that would trigger a requirement for a company to register with the Securities and Exchange Commission (SEC), the bill excludes qualified institutional buyers (QIBs) and institutional accredited investors from the count. QIBs are typically large financial institutions like mutual funds, insurance companies, and investment banks that meet certain financial criteria, while institutional accredited investors are organizations with sophisticated investment knowledge and substantial assets. By excluding these types of investors from the holder calculation, the bill aims to make it easier for smaller businesses to avoid mandatory SEC registration, potentially reducing regulatory burdens and compliance costs for companies with a significant number of institutional investors. The bill also stipulates that the SEC's general exemptive authority cannot be used to modify this specific provision, ensuring the exclusion remains in place as intended.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/4130/all-info