H.R. 4429

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4429 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
1st Session
H. R. 4429

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

December 2, 2025

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

_______________________________________________________________________

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.

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 ``Developing and Empowering our 
Aspiring Leaders Act of 2025''.

SEC. 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.

Attest:

KEVIN F. MCCUMBER,

Clerk.