What This Bill Does · Plain English
Summary · Congress.gov
Developing and Empowering our Aspiring Leaders Act of 2025 This bill directs the Securities and Exchange Commission to revise venture capital investment regulations to allow additional types of investments to be considered as qualifying investments. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Under current regulations, non-qualifying investments—which include secondary transactions and investments in other venture capital funds—may comprise up to 20% of a venture capital fund. The bill allows investments acquired through secondary transactions or investments in other venture capital funds to be considered as qualifying investments for venture capital funds. However, for a private fund to qualify as a venture capital fund, the fund's investments must predominately (1) be acquired directly, or (2) be investments in other venture capital funds.
Action Timeline
2025-12-02
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
2025-12-01
Motion to reconsider laid on the table Agreed to without objection.
2025-12-01
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4949)
2025-12-01
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4949)
2025-12-01
DEBATE - The House proceeded with forty minutes of debate on H.R. 4429.
2025-12-01
Considered under suspension of the rules. (consideration: CR H4948-4950)
2025-12-01
Mr. Davidson moved to suspend the rules and pass the bill, as amended.
2025-09-08
Placed on the Union Calendar, Calendar No. 203.
2025-09-08
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-246.
2025-09-08
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-246.
Frequently Asked Questions
Did HR.4429 pass?
HR.4429 is still alive. Current stage: PASSED_ONE. Pass likelihood: pending.
What does HR.4429 do?
Developing and Empowering our Aspiring Leaders Act of 2025 This bill directs the Securities and Exchange Commission to revise venture capital investment regulations to allow additional types of investments to be considered as qualifying investments. Venture capital funds are exempt from certain regulations applicable to other investment firms, including those related to filings, audits, and restricted communications with investors. Under current regulations, non-qualifying investments—which include secondary transactions and investments in other venture capital funds—may comprise up to 20% of …
Who sponsored HR.4429?
HR.4429 was sponsored by Ann Wagner (R-Missouri).
Full Bill Text
119 HR 4429 EH: Developing and Empowering our Aspiring Leaders Act of 2025 U.S. House of Representatives text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 4429 IN THE HOUSE OF REPRESENTATIVES AN ACT To require the Securities and Exchange Commission to revise the definition of a qualifying investment, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940, to include an equity security issued by a qualifying portfolio company and to include an investment in another venture capital fund, and for other purposes. 1. Short title This Act may be cited as the Developing and Empowering our Aspiring Leaders Act of 2025 . 2. Definitions Not later than the end of the 180-day period beginning on the date of the enactment of this Act, the Securities and Exchange Commission shall— (1) revise the definition of a qualifying investment under paragraph (c) of section 275.203(l)–1 of title 17, Code of Federal Regulations— (A) to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition; and (B) to specify that an investment in another venture capital fund (as defined in paragraph (a) section 275.203(l)–1 of title 17, Code of Federal Regulations) is a qualifying investment under such definition; and (2) revise paragraph (a) of such section to require, as a condition of a private fund qualifying as a venture capital fund under such paragraph, that, immediately after the acquisition of any asset, such fund holds no more than 49 percent of the amount of the fund’s aggregate capital contributions and uncalled committed capital (excluding short-term holdings) in— (A) one or more venture capital funds; or (B) qualifying investments acquired in a secondary acquisition, valued at cost or fair value, consistently applied by the fund. Passed the House of Representatives December 1, 2025. Kevin F. McCumber, Clerk.
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