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 to allow presentations by issuers at certain events. This is intended to facilitate capital formation for early-stage companies by allowing them to reach potential investors more easily. The bill defines specific criteria for events where such presentations can occur without violating general solicitation prohibitions.
Expected Effects
The bill's passage would lead to the SEC revising Regulation D within six months of enactment. This revision would allow issuers to present at sponsored events without automatically violating restrictions on general solicitation. The intended outcome is increased access to capital for startups and early-stage businesses.
Potential Benefits
- Increased access to capital for startups and early-stage companies.
- More opportunities for accredited investors to discover and invest in new businesses.
- Potential for economic growth through increased investment and innovation.
- Clearer guidelines for issuers and event sponsors regarding permissible activities.
- Support for entrepreneurship and job creation.
Potential Disadvantages
- Potential for increased risk of fraud or misrepresentation due to broader solicitation.
- Possible erosion of investor protections if due diligence is compromised.
- Risk that the definition of "accredited investor" may not adequately protect unsophisticated investors.
- Complexity in ensuring compliance with the specific requirements for sponsored events.
- Potential for uneven application or interpretation of the revised regulations by the SEC.
Constitutional Alignment
The bill primarily concerns securities regulation, an area where Congress has broad authority under the Commerce Clause (Article I, Section 8, Clause 3) to regulate interstate commerce. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments. The limitations placed on events sponsored by religious organizations are potentially relevant to the First Amendment, but the bill appears to avoid violating the Establishment Clause by focusing on the secular nature of investment events.
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).