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 to allow presentations by issuers at certain events without violating advertising restrictions. This is intended to facilitate capital formation for early-stage companies by connecting them with angel investors. The bill defines 'angel investor group' and 'issuer' and sets conditions for sponsored events where general solicitation is permitted.
Expected Effects
The HALOS Act is likely to increase access to capital for startups by easing restrictions on general solicitation. This could lead to more investment in early-stage companies. The SEC will 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 and early-stage companies.
- Facilitation of networking between issuers and angel investors.
- Potential for economic growth through new business formation and innovation.
- Clarification of rules regarding general solicitation, reducing regulatory uncertainty.
- Support for entrepreneurship and job creation.
Potential Disadvantages
- Potential for increased risk to investors due to broader solicitation.
- Possible exploitation by fraudulent issuers if oversight is insufficient.
- Complexity in ensuring compliance with event sponsorship requirements.
- Risk of creating loopholes that undermine investor protection.
- Administrative burden on the SEC to revise and enforce the new regulations.
Constitutional Alignment
The bill primarily concerns securities regulation, which falls under the commerce clause (Article I, Section 8, Clause 3) of the Constitution, granting Congress the power to regulate interstate commerce. The First Amendment's guarantee of freedom of speech could be relevant, as the bill addresses restrictions on advertising and solicitation. However, the government has the power to regulate commercial speech to protect investors and prevent fraud.
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).