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H.R. 2579House118th Congress (2023-2025)In Committee

Developing and Empowering our Aspiring Leaders Act of 2023

Sponsored by Andy BarrRep. Andy Barr (R-KY)
Introduced April 13, 2023

AI-Generated Summary

Updated January 20, 2026 at 6:13 AM UTC

The bill directs the Securities and Exchange Commission to update the rules that define a “qualifying investment” for the venture‑capital fund adviser exemption under the Investment Advisers Act. The changes would broaden the definition to count equity securities from portfolio companies and investments in other venture‑capital funds. This would affect venture‑capital fund advisers and the SEC’s regulatory framework for private funds seeking the exemption.

Key Provisions

  • Within 180 days of enactment, the SEC must revise the definition of a qualifying investment to include equity securities issued by a qualifying portfolio company, whether bought directly or in a secondary transaction.
  • The SEC must also treat an investment in another venture‑capital fund as a qualifying investment under the same definition.
  • The SEC must amend the criteria for a private fund to qualify as a venture‑capital fund, requiring that its qualifying investments be predominantly either direct equity in portfolio companies or investments in other venture‑capital funds.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

Financial Services Committee

April 13, 2023

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HouseIntro Referral

Introduced in House

April 13, 2023

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

April 13, 2023

Bill Text

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Introduced in HouseIssued April 13, 2023

I

118th CONGRESS

1st Session

H. R. 2579

IN THE HOUSE OF REPRESENTATIVES

April 13, 2023

Mr. Barr introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To require the Securities and Exchange Commission to revise the definition of a qualifying investment, for purposes of the exemption from registration for venture capital fund advisers under the Investment Advisers Act of 1940, to include an equity security issued by a qualifying portfolio company and to include an investment in another venture capital fund, and for other purposes.

1.

Short title

This Act may be cited as the Developing and Empowering our Aspiring Leaders Act of 2023.

2.

Definitions

Not later than the end of the 180-day period beginning on the date of the enactment of this Act, the Securities and Exchange Commission shall—

(1)

revise the definition of a qualifying investment under paragraph (c) of section 275.203(l)–1 of title 17, Code of Federal Regulations—

(A)

to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition; and

(B)

to specify that an investment in another venture capital fund is a qualifying investment under such definition; and

(2)

revise paragraph (a) of such section to require, as a condition of a private fund qualifying as a venture capital fund under such paragraph, that the qualifying investments of the private fund are either—

(A)

predominantly qualifying investments that were acquired directly from a qualifying portfolio company; or

(B)

predominantly qualifying investments in another venture capital fund or other venture capital funds.