Sponsors (2)
The bill reduces compliance burdens for smaller advisers by raising and indexing the SEC registration threshold, but at the cost of expanding the pool of advisers exempt from oversight and creating potential unpredictability for firms and weaker protections for investors.
Small investment advisers with less than $75 million in assets under management face reduced SEC registration requirements, lowering compliance costs for those firms.
The exemption threshold is indexed to the CPI‑U, which preserves the real value of the exemption over time and prevents inflation from automatically forcing more firms into registration.
More advisers could be exempted from SEC registration—now and increasingly over time—reducing regulatory oversight and investor protections for clients of those advisers.
Indexing and periodic adjustments could gradually expand the exemption's reach, weakening market oversight and safeguards over the long term.
Rounding the threshold to the nearest $1,000,000 can cause stepwise effects that unpredictably move advisers just below or above the cutoff, producing abrupt changes in compliance obligations for firms near the threshold.
Based on analysis of 2 sections of legislative text.
Raises the statutory dollar threshold from $50M to $75M in the Investment Advisers Act and requires the SEC to adjust it for inflation every five years using CPI‑U, rounded to $1M.
Official title: Amend the Investment Advisers Act of 1940 to address the exemption of, and reporting by, certain private fund advisers, and for other purposes.
Introduced February 12, 2026 by Marion Michael Rounds · Last progress February 12, 2026
Amends the Investment Advisers Act to raise a dollar threshold used in the law from $50 million to $75 million and requires the SEC to update that threshold for inflation every five years using the CPI‑U, rounding to the nearest $1,000,000. The change increases the monetary cutoff that determines which private fund advisers qualify for a particular regulatory treatment or exemption, and makes the threshold automatically inflation‑adjusted going forward.