Bills · HR 4171
REPORTED· 119TH CONGRESS
House BillHR 4171SecuritiesFraud offenses and financial crimes
SEED Act of 2025
INTRO JUN 26· LAST ACTION MAR 25
READING
3MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it directly addresses the challenges small businesses face in accessing capital, which is a major hurdle for growth and job creation. By reducing the regulatory burden for small fundraising efforts, it could allow more startups and local enterprises to get off the ground or expand, fostering economic activity. For many small businesses, the cost and complexity of existing securities regulations make raising even small amounts of money prohibitive.
However, it also changes the landscape for investors. While making it easier to invest in small businesses, it also means investors will have less official information provided to them before making a decision. This shift could lead to both more entrepreneurial activity and potentially higher risks for investors who don't conduct thorough independent research. Voters should care because it impacts both the ease of starting and growing a business in their communities and the protections available to people who invest in those businesses.
KEY PROVISIONS
5AI-extractedPROVISION 01
Creates a 'micro-offering exemption' for small businesses selling securities, removing the need for mandated disclosures and filing paperwork for certain small fundraising amounts.
This provision significantly reduces the regulatory burden and costs for very small companies seeking to raise capital.
PROVISION 02
Sets the maximum amount that can be raised through this exemption at $500,000 within a 12-month period, with the amount subject to inflation adjustments every five years.
This defines the scope of the exemption, targeting truly 'micro' offerings and allowing the limit to stay relevant over time.
PROVISION 03
Specifies that even with the exemption, transactions remain subject to existing federal anti-fraud provisions, meaning it's still illegal to mislead investors.
This ensures that a core level of investor protection against dishonest practices remains in place, even without extensive disclosures.
PROVISION 04
Prohibits 'bad actors' – individuals or entities with a history of certain financial misconduct – from using this micro-offering exemption.
This aims to protect investors by preventing those with a track record of violating securities laws from taking advantage of the reduced oversight.
PROVISION 05
Amends the Securities Act of 1933 to ensure that these micro-offerings are exempt from state securities registration requirements (often called 'blue sky laws').
This provides a uniform federal approach for these small offerings, preventing them from being subject to a patchwork of state-level rules.
SPONSORSHIP
1 + 0
R· New York
YRS IN OFFICE
5
BILLS LED
40
ACTION TIMELINE
6 EVENTSMAR 25
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-572.
MAR 25
Placed on the Union Calendar, Calendar No. 492.
MAR 4
Committee Consideration and Mark-up Session Held
MAR 4
Ordered to be Reported by the Yeas and Nays: 26 - 17.
BILL INFO
TypeHouse Bill
NumberHR 4171
Congress119th
StatusReported
IntroducedJun 26, 2025
Last actionMar 25, 2026
READER REACTIONS
OVERALL SENTIMENT
No reactions yet. Be the first to weigh in.
Discussion
Loading comments...
REPORTED· 119TH CONGRESS · FINANCIAL SERVICES COMMITTEE · INTRODUCED JUN 26, 2025
House BillHR 4171SecuritiesFraud offenses and financial crimes
SEED Act of 2025
INTRODUCED JUN 26, 2025· LAST ACTION MAR 25, 2026
PASSAGE CHANCES
—%
READING
3 min
COSPONSORS
0
COMPLEXITY
Moderate
