Amendment for Crowdfunding Capital Enhancement and Small-business Support Act of 2025; ACCESS Act of 2025
Summary
The "Amendment for Crowdfunding Capital Enhancement and Small-business Support Act of 2025" (ACCESS Act of 2025) aims to amend the Securities Act of 1933. It focuses on raising the offering amount threshold for issuers using crowdfunding exemptions. This change affects when these issuers are required to file financial statements reviewed by an independent public accountant.
Expected Effects
The primary effect of this bill is to increase the threshold from $100,000 to $250,000 for requiring reviewed financial statements. The Securities and Exchange Commission (SEC) also gains discretion to further adjust this amount up to $400,000 based on recommendations from specific offices. This adjustment aims to reduce the regulatory burden on small businesses seeking capital through crowdfunding.
Potential Benefits
- Reduced compliance costs for small businesses raising capital through crowdfunding.
- Increased access to capital for startups and small businesses.
- Potential for more small businesses to utilize crowdfunding as a viable funding option.
- Greater flexibility for the SEC to adjust the threshold based on market conditions.
- Technical corrections to the Securities Act of 1933 to improve clarity.
Most Benefited Areas:
Potential Disadvantages
- Potential increased risk for investors due to less stringent financial review requirements for smaller offerings.
- Possibility of fraudulent activities going undetected with higher thresholds.
- Risk that the SEC may not adequately adjust the threshold based on recommendations.
- May lead to a decrease in the quality of financial information available to investors.
- Could create an uneven playing field between smaller and larger crowdfunding issuers.
Constitutional Alignment
The bill aligns with the Commerce Clause (Article I, Section 8) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By amending securities regulations related to crowdfunding, the bill aims to facilitate capital formation and economic activity, which falls under the purview of regulating commerce. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).