WASHINGTON, D.C. – The Financial Technology Association (FTA), a trade association representing fintech industry leaders, applauded the House of Representatives for passing legislation to expand access to capital and investment opportunities in private markets, including several provisions to modernize the definition of an accredited investor. The bills passed as part of H.R. 2799, the Expanding Access to Capital Act, a capital formation legislative package championed by House Financial Services Committee Chairman Patrick McHenry.
“Private markets are a major engine of economic growth, and more investors should be able to take part in these opportunities to build wealth,” said Penny Lee, President and Chief Executive Officer of the Financial Technology Association. “This legislation levels the playing field so more Americans can invest in the startups and growing companies that power our economy. We applaud Chairman McHenry for championing these bills that support the innovation economy and break down barriers to wealth building.”
Currently, investors must meet certain wealth or income levels to qualify as an accredited investor, regardless of their level of financial sophistication. The bills contained in the package – including H.R. 2652, the Investment Opportunity Expansion Act, H.R. 1574, the Risk Disclosure and Investor Attestation Act, and H.R. 2773, the Accredited Investors Include Individuals Receiving Advice from Certain Professionals Act – would expand the definition of an accredited investor to allow more qualified individuals to become accredited investors and participate in private markets. FTA previously endorsed H.R. 835, the Fair Investment Opportunities for Professional Experts Act, which passed the House in 2023.
The capital formation package also includes H.R. 2579, the Developing and Empowering our Aspiring Leaders (DEAL) Act, and H.R. 2790, the Improving Capital Allocation for Newcomers (ICAN) Act, both of which would help emerging venture capital funds attract and direct more capital to growing companies, particularly those operating in emerging sectors or regions.
To learn more, read Just the Facts: Expanding Investment Access and Opportunity, The Deal Act: Issue Brief, and Qualifying Venture Capital Fund Parameters: Issue Brief.
ABOUT US
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.