Sponsors (2)
The bill would ease and preserve small-entity regulatory relief for small businesses and smaller financial firms while requiring SEC review and indexing, at the cost of reducing oversight for some firms and creating short-term compliance and administrative burdens.
Small-business owners and smaller financial firms would gain regulatory relief if the SEC expands the 'small entity' definition to include more firms, potentially lowering compliance burdens and costs.
Small-business owners and financial firms will have eligibility thresholds adjusted automatically for inflation every 5 years, preserving small-entity protections over time and preventing inflation from eroding benefits.
Taxpayers and small-business owners would get increased transparency and accountability because the SEC must deliver a formal study and specific recommendations to Congress within one year and again after five years.
Financial institutions and taxpayers could face increased risk to investors and markets because expanding the 'small entity' definition reduces regulatory oversight for more firms.
Financial institutions and small-business owners could face compliance uncertainty and transitional costs if new rules follow the required studies, raising short-term costs and planning challenges.
Federal employees could face increased workload and the SEC may incur administrative costs because mandated studies and related rulemaking could divert staff time from other regulatory priorities.
Based on analysis of 2 sections of legislative text.
Introduced September 29, 2025 by Katie Boyd Britt · Last progress September 29, 2025
Requires the Securities and Exchange Commission to study and, as appropriate, revise its definition of “small entity” used for Regulatory Flexibility Act analyses. The SEC must submit a study and recommendations to Congress within one year, repeat the study five years later, follow notice-and-comment rulemaking to update rules, and inflation‑adjust any dollar thresholds every five years using CPI–U.