Sponsor
Warren Davidson
Representative · R-OH
Representative · R-OH
The bill expands retail access to private offerings through a short, uniform investor attestation form—making it easier to invest in private securities—while increasing the risk of retail investor losses and imposing new compliance and enforcement costs on issuers and regulators.
Potential non‑accredited investors (including small-business owners) can use a standardized short attestation to access private offerings, simplifying access to private investments that were previously harder for retail participants to reach.
Issuers and financial institutions will face a SEC-mandated uniform ≤2-page form within one year, reducing paperwork, inconsistencies across issuers, and administrative friction in offering private securities.
Retail investors (and ultimately taxpayers) may face greater risk of losses because broader self-attestation enables more individuals to buy illiquid, high-risk private securities with limited investor protections.
Issuers, financial institutions, and the SEC will incur additional compliance, administrative, and enforcement costs to implement and police the new attestation regime.
Based on analysis of 2 sections of legislative text.
Adds a formal "investor attestation" and requires the SEC to create a two-page standardized attestation form within one year.
Official title: To amend the Securities Act of 1933 to permit an individual to invest in private issuers upon acknowledging the investment risks, and for other purposes.
Introduced January 3, 2025 by Warren Davidson · Last progress January 3, 2025
Adds a new "investor attestation" category to the Securities Act of 1933 and directs the SEC to create a standardized attestation form no longer than two pages. The SEC must adopt implementing rules, including the required form, within one year of the Act's enactment. The change treats any individual who signs that attestation as having provided an "investor attestation" to an issuer; the law sets page-length limits for the form but does not create new funding or substantive program authorizations beyond the rulemaking requirement.