119-HR-4429 Journalist Public Summary

Headline Summary

Let venture funds count secondary share purchases and investments in other VC funds as “qualifying” under SEC rules—while keeping most investments direct—to make it easier to fund startups. [1]Congress.gov — Text — H.R. 4429 (Reported in House)

What It Does

The bill tells the SEC to update its venture capital rules so that two things count as “qualifying investments”: (1) equity bought in secondary transactions (not just directly from a startup) and (2) investments in other venture capital funds. At least 51% of a fund’s capital must still be direct equity in qualifying startups; up to 49% could be secondaries or stakes in other VC funds. The SEC would have 180 days after enactment to implement the changes. [1]Congress.gov — Text — H.R. 4429 (Reported in House)

Today’s SEC rule lets VC funds hold up to 20% in non‑qualifying assets; this bill would reclassify some of those assets (secondaries and VC fund‑of‑funds) as qualifying rather than expanding that 20% basket. [2]Legal Information Institute (Cornell) — 17 CFR § 275.203(l)-1 — Venture capital…

Who’s For It

• Sponsors: Rep. Ann Wagner (R‑MO) with Rep. Sean Casten (D‑IL) as a cosponsor; the bill advanced from the House Financial Services Committee. [4]Congress.gov — Cosponsors — H.R. 4429 (119th Congress)[5]Congress.gov — All Info — H.R. 4429 (actions overview)
• Industry groups: The National Venture Capital Association has long backed similar DEAL/DELA proposals, arguing they help emerging managers and provide liquidity through secondary sales. [6]NVCA — NVCA praises House passage of Expanding Access to Capital Act (includes…[7]NVCA — NVCA press release on DEAL Act (2022)
• House committee majority: Says the change would let larger funds seed smaller, regional funds and spread capital beyond the usual tech hubs, while still keeping most VC investing direct. [8]Congress.gov — House Report 119-246 — Committee report on H.R. 4429

Who’s Against It

• Investor‑protection advocates (e.g., Americans for Financial Reform) have opposed parts of the broader capital‑formation package, warning that loosening private‑market rules can weaken safeguards and transparency. [9]Americans for Financial Reform — AFR letter re: Beyond Silicon Valley hearing (…
• State securities regulators (NASAA) have cautioned in related testimony against broad rollbacks in private‑market oversight that could raise risks for smaller investors. [10]NASAA — NASAA — Written testimony of Amanda Senn (Mar. 25, 2025)

What’s Next

On December 1, 2025, the House placed the bill on the floor under suspension of the rules; official logs list it among that day’s measures. As of December 2, Congress.gov still shows the latest formal action as placement on the Union Calendar (Sept. 8). After House action is finalized and recorded, the bill moves to the Senate (likely the Banking, Housing, and Urban Affairs Committee). [3]Congress.gov — On the House Floor on December 1, 2025[5]Congress.gov — All Info — H.R. 4429 (actions overview)