H.R.3352 - Helping Angels Lead Our Startups Act of 2025; HALOS Act of 2025 (119th Congress)
Summary
H.R.3352, the HALOS Act of 2025, aims to revise SEC rules regarding general solicitation and advertising, specifically to allow presentations by issuers at certain events without violating restrictions on general solicitation. The bill defines 'angel investor group' and outlines criteria for events where issuers can present information about securities offerings. The goal is to facilitate capital formation for startups by clarifying regulations and allowing broader communication with potential investors at sponsored events.
Expected Effects
The HALOS Act, if enacted, would likely lead to increased opportunities for startups to connect with angel investors and raise capital. This could stimulate economic growth and innovation by making it easier for new businesses to access funding. The SEC would be required to revise Regulation D within six months of the Act's enactment to reflect these changes.
Potential Benefits
- Increased access to capital for startups, fostering innovation and growth.
- Clarified regulations for general solicitation, reducing uncertainty for issuers and investors.
- Expanded opportunities for networking and information sharing between startups and angel investors.
- Potential for job creation as startups secure funding and expand their operations.
- Streamlined process for startups to present their offerings at sponsored events.
Potential Disadvantages
- Potential for increased risk to investors due to broader solicitation, requiring careful due diligence.
- Possible loopholes that could be exploited by fraudulent actors to target unsophisticated investors.
- Administrative burden on the SEC to revise regulations and ensure compliance.
- Risk of events becoming overly commercialized, diluting their educational or networking value.
- The definition of 'angel investor group' might be too restrictive, excluding legitimate investment groups.
Constitutional Alignment
The bill appears to align with the spirit of promoting economic growth and opportunity, which can be seen as furthering the general welfare as mentioned in the Preamble of the US Constitution. The regulation of securities and interstate commerce falls under the powers granted to Congress in Article I, Section 8. The First Amendment's guarantee of freedom of speech could be relevant, as the bill seeks to clarify permissible communications related to securities offerings.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).