Small Entity Update Act

This bill requires the Securities and Exchange Commission (SEC) to regularly review and update its definition of "small entities" (such as small businesses and organizations subject to SEC regulations). Every five years, the SEC must study whether the current definition aligns with regulatory goals, reflects market growth, and covers a meaningful number of entities, then submit detailed recommendations to Congress. The SEC must revise its rules based on these studies and adjust dollar thresholds in the definition annually to account for inflation using the Consumer Price Index. This directly affects small entities regulated by the SEC, ensuring their definition stays relevant to current market conditions.