Small Entity Update Act

This bill requires the Securities and Exchange Commission (SEC) to periodically review and update its definition of "small entity" for regulatory purposes. It directly affects businesses, organizations, and governmental entities subject to SEC rules who qualify as "small entities" under current definitions. The law mandates the SEC to conduct studies every 6 years (within 1 year of enactment, then every 5 years), report findings and recommendations to Congress, and adjust its rules based on the study results. Additionally, it requires the SEC to update all dollar thresholds in the definition annually using the Consumer Price Index to account for inflation.