The Financial Technology Association (FTA) joined two joint trades letters ahead of the House Financial Services Subcommittee Hearing entitled “The Future of American Capital: Strengthening Public and Private Markets by Increasing Investor Access and Facilitating Capital Formation.”
The first letter, led by the Innovation Coalition, urged Congress to expand capital access for startups and private market opportunities.
Key legislative proposals under consideration include:
- Expanding capital access by reducing regulatory barriers and enhancing exempt offering pathways for entrepreneurs.
- Supporting emerging fund managers by increasing investment limits and broadening qualifying venture capital investments to strengthen regional ecosystems.
- Enhancing investment opportunities by modernizing the accredited investor standard and responsibly expanding access to private market investments.
“The U.S. capital markets are the engine that powers innovation and economic growth, but raising capital can be daunting for many startups, funds, and businesses,” said the joint trades.
The second letter, led by the Accredited Investor Alliance (AIA), called for broadening the definition of an accredited investor to include credentials, education, and experience, ensuring wider investment access while maintaining protections.
Key considerations include:
- Broadening accredited investor qualifications beyond income and net worth thresholds to include relevant licenses, education, and job experience.
- Recognizing existing financial standards such as fiduciary and best-interest obligations that safeguard investors.
- Advancing bipartisan legislative efforts that have consistently passed the House, including the Fair Investment Opportunities for Professional Experts Act and provisions from the Empowering Main Street in America Act.
“Meaningfully expanding the pool of accredited investors while preserving appropriate investor protections would help democratize access to investment opportunities and foster capital formation,” said the joint trades.