H.R. 3394

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3394 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
1st Session
H. R. 3394

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 24, 2025

Received; read twice and referred to the Committee on Banking, Housing, 
and Urban Affairs

_______________________________________________________________________

AN ACT

To amend the Securities Act of 1933 to codify certain qualifications of 
individuals as accredited investors for purposes of the securities 
laws.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Fair Investment Opportunities for 
Professional Experts Act''.

SEC. 2. DEFINITION OF ACCREDITED INVESTOR.

(a) In General.--Section 2(a)(15) of the Securities Act of 1933 (15 
U.S.C. 77b(a)(15)) is amended--
(1) by redesignating subparagraphs (i) and (ii) as 
subparagraphs (A) and (F), respectively; and
(2) in subparagraph (A) (as so redesignated), by striking 
``; or'' and inserting a semicolon, and inserting after such 
subparagraph the following:
``(B) with respect to a proposed sale of a 
security, any natural person whose individual net 
worth, or joint net worth with that person's spouse or 
spousal equivalent, at the time of such sale, exceeds 
$1,000,000 (which amount, along with the amounts set 
forth in subparagraph (C), shall be adjusted for 
inflation by the Commission every 5 years to the 
nearest $10,000 to reflect the change in the Consumer 
Price Index for All Urban Consumers published by the 
Bureau of Labor Statistics) where, for purposes of 
calculating net worth under this subparagraph--
``(i) the person's primary residence shall 
not be included as an asset;
``(ii) indebtedness that is secured by the 
person's primary residence, up to the estimated 
fair market value of the primary residence at 
the time of such sale, shall not be included as 
a liability (except that if the amount of such 
indebtedness outstanding at the time of such 
sale exceeds the amount outstanding 60 days 
before such time, other than as a result of the 
acquisition of the primary residence, the 
amount of such excess shall be included as a 
liability); and
``(iii) indebtedness that is secured by the 
person's primary residence in excess of the 
estimated fair market value of the primary 
residence at the time of such sale shall be 
included as a liability;
``(C) any natural person who had an individual 
income in excess of $200,000 in each of the 2 most 
recent years or joint income with that person's spouse 
or spousal equivalent in excess of $300,000 in each of 
those years and has a reasonable expectation of 
reaching the same income level in the current year;
``(D) any natural person who is--
``(i) currently licensed or registered as a 
broker or investment adviser by the Commission, 
a self-regulatory organization (as defined in 
section 3(a) of the Securities Exchange Act of 
1934), or the securities division of a State, 
the District of Columbia, or a territory of the 
United States or the equivalent division 
responsible for licensing or registration of 
individuals in connection with securities 
activities; and
``(ii) in good standing with respect to 
such licence or registration;
``(E) any natural person the Commission determines, 
by regulation, to have demonstrable education or job 
experience to qualify such person as having 
professional knowledge of a subject related to a 
particular investment, and whose education or job 
experience is verified by a self-regulatory 
organization (as defined in section 3(a) of the 
Securities Exchange Act of 1934); or''.
(b) Rulemaking.--Not later than 180 days after the date of 
enactment of this Act, the Securities and Exchange Commission shall 
revise the definition of accredited investor under Regulation D (17 CFR 
230.500 et seq.) to conform with the amendments made by subsection (a).

Passed the House of Representatives June 23, 2025.

Attest:

KEVIN F. MCCUMBER,

Clerk.