S. 2924

119th CONGRESS 1st Session

To require the Securities and Exchange Commission to carry out a study and rulemaking on the definition of the term under the securities laws for purposes of of title 5, United States Code, and for other purposes.

IN THE SENATE OF THE UNITED STATES · September 29, 2025 · Sponsor: Mrs. Britt · Committee: Committee on Banking, Housing, and Urban Affairs

Table of contents

• S. 2924
  • SEC. 1. Short title
  • SEC. 2. Studies, reports, and rules regarding small entities

SEC. 1. Short title

• This Act may be cited as the Small Entity Update Act.

SEC. 2. Studies, reports, and rules regarding small entities

• (a) Definitions
  • In this section—
    • the term Commission means the Securities and Exchange Commission; and
    • the term — small entity
• (b) Studies and reports
  • Not later than 1 year after the date of enactment of this Act, and again 5 years thereafter, the Commission shall—
    • conduct a study of the definition of the term with respect to the activities of the Commission for the purposes of of title 5, United States Code, which shall consider— small entity chapter 6
      • the extent to which the definition of the term , as in effect during the period in which the study is conducted, aligns with the findings and declarations made under section 2(a) of the Regulatory Flexibility Act ( note); small entity 5 U.S.C. 601
      • the amount by which financial markets in the United States have grown since the last time the Commission amended the definition of the term , if applicable; and small entity
      • how the Commission should define the term to ensure that a meaningful number of entities would fall under that definition; and small entity
    • submit to Congress a report that includes—
      • the results of the applicable study conducted under paragraph (1); and
      • specific and detailed recommendations on the ways in which the Commission could amend the definition of the term to— small entity
        • (i) be consistent with the results described in subparagraph (A); and
        • (ii) expand the number of entities covered by such definition.
• (c) Rulemaking
  • Concurrently with, or after the completion of, each study required under subsection (b), the Commission shall, subject to public notice and comment, revise the rules of the Commission consistent with the results of such study.
• (d) Inflation adjustments
  • After the Commission issued the final rule revisions required under subsection (c), and every 5 years thereafter, the Commission shall adjust any dollar figures under the definition of small entity established by the Commission to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.