Before hightailing it out of Washington for the summer, on Monday the House of Representatives passed The Equal Opportunity for All Investors Act of 2025, which, if enacted, would direct the SEC to establish a test that individuals can take to qualify as an “accredited investor” as defined in Regulation D. As contemplated by the Act, the SEC’s accredited investor test would evaluate a prospective investor’s understanding of topics such as financial statements, risks associated with investments in private companies and different types of securities.

If this sounds familiar, the House passed a similar bill back in 2023. The push for an accredited investor exam that would go beyond the current wealth/income criteria for natural persons is part of a Republican effort to democratize access to private offerings.

– Dave Lynn