HR 4429 United States House · 119th Congress

Developing and Empowering our Aspiring Leaders Act of 2025

This bill requires the Securities and Exchange Commission (SEC) to revise two specific regulations within 180 days of enactment. It would change the definition of "qualifying investments" for venture capital funds to include equity securities from qualifying companies (purchased directly or in secondary markets) and allow investments in other venture capital funds to count toward qualification. These revisions would directly affect venture capital funds seeking to maintain their regulatory status by altering the types of investments they can hold. The changes aim to adjust how venture capital funds structure their portfolios under current SEC rules.

Bill status passed 3 of 5 stages cleared

Introduction

Jul 2025

Committee Review

Dec 2025

House Passage

Dec 2025

Senate Passage

President

Introduced Jul 16, 2025 Last action Dec 2, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced in House → Engrossed in House · 3 edits · Dec 1, 2025

MINOR

The Engrossed version replaces a vague 'predominantly' standard with a specific 49 percent cap on how much of a venture capital fund's capital can be allocated to other VC funds or secondary acquisitions. This gives VC funds clearer, more flexible rules for holding secondary positions while still qualifying for the SEC's venture capital fund exemption from certain registration requirements.

Scope change

The bill's scope is unchanged in terms of which entities it applies to (private funds seeking VC fund status under SEC rules), but the practical eligibility threshold shifted from an undefined 'predominantly' standard to a hard 49 percent numerical cap, making it easier for funds with meaningful secondary positions to qualify.

REQUIREMENT

Replaced the 'predominantly' standard with a precise 49 percent cap: a fund must hold no more than 49 percent of its aggregate capital contributions and uncalled committed capital (excluding short-term holdings) in other VC funds or secondary acquisitions, measured immediately after any asset acquisition.

DEFINITION

Added a cross-reference specifying that 'another venture capital fund' means one as defined in paragraph (a) of section 275.203(l)-1 of title 17, CFR, making the definition self-referential and more precise.

ELIGIBILITY

Secondary acquisitions are now explicitly named as a category that counts against the 49 percent cap, with valuation at cost or fair value (consistently applied). The original version did not clearly address how secondary positions affected VC fund qualification.

Floor votes

How they voted

This bill passed the House by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Dec 2, 2025

Committee

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

upper

Dec 1, 2025

Introduced

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4949)

lower

Dec 1, 2025

Lower · Passed

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4949)

lower

Dec 1, 2025

Introduced

Mr. Davidson moved to suspend the rules and pass the bill, as amended.

lower

Sep 8, 2025

Lower · Passed

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-246.

lower

Jul 22, 2025

Introduced

Ordered to be Reported (Amended) by the Yeas and Nays: 50 - 2.

lower

Jul 22, 2025

Lower · Passed

Committee Consideration and Mark-up Session Held

lower

Jul 16, 2025

Committee

Referred to the House Committee on Financial Services.

lower

Jul 16, 2025

Introduced

Introduced in House

lower

1 primary · 1 co-sponsor