HALOS Act of 2025

Mr. Speaker, I thank Chair Wagner for yielding me time.

Mr. Speaker, I rise in support of my bill, H.R. 3352, the HALOS Act, a bill I reintroduced this Congress with my colleague, Congressman Josh Gottheimer of New Jersey.

America's small businesses have faced a tough road, weathering the impacts of COVID, high inflation, and burdensome regulations that have made it harder to grow and compete. Yet, they continue to serve as the backbone of our economy, driving innovation, creating jobs, and keeping the American Dream alive.

According to the Small Business Administration, firms with fewer than 500 employees account for 43.5 percent of our Nation's GDP. Since 2019, they have been responsible for over 70 percent of net new job creation. Just last year, we saw more than 430,000 new business applications each month, a 50 percent increase compared to 2019.

That kind of momentum deserves our full support. We should be doing everything we can to encourage investment, foster innovation, and make it easier, not harder, for entrepreneurs to succeed. That is why I introduced the Helping Angels Lead Our Startups Act, otherwise known as the HALOS Act.

This bipartisan bill, which I am proud to lead alongside Josh Gottheimer, is a straightforward way to give early-stage startups more opportunities to connect with potential investors. The HALOS Act clarifies the definition of ``general solicitation'' and allows startups to participate in demo day events without fear of running afoul of outdated securities regulations.

It also defines what it means to be an angel investor, helping entrepreneurs know who they can engage with as they work to get their ideas off the ground.

These changes are not about deregulation for its own sake. They are about opening doors. They make it easier for new businesses to get the early capital they need to hire, grow, and contribute to a dynamic, competitive economy, and we know that this model works.

Angel investors helped launch companies like Amazon, Google, Facebook, Costco, and Starbucks, names we all recognize today that started as small ideas in need of capital and support.

By reducing legal uncertainty, especially around demo day events, we are also giving more room for underrepresented entrepreneurs and overlooked

communities to pitch their ideas and access funding. It is a chance to level the playing field and help more people take part in building America's next generation of businesses.

I am proud that during the committee process, we were able to make thoughtful revisions to address concerns raised by the ranking member.

I thank Chairman Hill for advancing this bill, as well as my colleague, the chairwoman of the Subcommittee on Capital Markets, and Congressman Gottheimer for his partnership.

The HALOS Act builds on the bipartisan success of the JOBS Act and is a commonsense step forward to modernize our rules and strengthen our economy.

Mr. Speaker, I urge my colleagues to support the bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 3352, the Helping Angels Lead Our Startups Act, or HALOS Act of 2025, sponsored by the gentleman from New York (Mr. Lawler).

I want to comment on the terminology of the bill. Let's face it, this is not an effort to help charity or, perhaps, God or angels. We have halos. We have angels. These are private investors trying to get the best deal for themselves.

That being said, and perhaps not giving them full halo status, let me say that these angel investors do play an important role in our economy, even if they have named themselves after the angels of Heaven.

Let's break down two things with the bill. First, it allows startups to discuss their products and business plans at certain events known as demo days without such discussions counting as a general solicitation under our securities regulations and, therefore, as an investment offering necessitating SEC registration.

Second, it defines what an angel investor is for purposes of security laws. Angel investors are simply well-off individuals who invest their money into startups.

Again, I know that angels enter Heaven. Whether well-off individuals enter Heaven is a discussion for a more theological venue.

Unlike prior iterations of this bill, the current bill prohibits demo days from taking place at facilities owned by religious institutions. That is what is prohibited. It allows both Native American Tribes and startup incubators to host them.

I am aware of several instances where bad actors took advantage of the halo, if you will, of being in a church to get investments that were inappropriate. This has been an issue for Ranking Member Waters. She has negotiated changes in this bill at the committee level.

I am pleased that Mr. Lawler and Ranking Member Waters collectively agreed to remove churches and other religious institutions as sites for these demo days in the bill, which substantially eliminates the outstanding concerns of the Committee on Financial Services Democrats.

As such, I am pleased to recommend to my colleagues to vote ``yes'' on this bill.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, I urge all Members to support H.R. 3352, the Helping Angels Lead Our Startups Act, or HALOS Act, sponsored by Mr. Lawler.

This legislation will help startups have easier access to the funding they need to get off the ground while addressing the issues of certain bad actors taking advantage of susceptible investors.

This bill threads that needle and will continue to amplify our Nation's great tradition of being the best place for entrepreneurs and talented go-getters to start and grow their businesses.

Mr. Speaker, I ask my colleagues to vote ``yes'' on the bill, and I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3352) to require the Securities and Exchange Commission to revise rules relating to general solicitation or general advertising to allow for presentations or other communication made by or on behalf of an issuer at certain events, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on this bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 3352, the Helping Angels Lead Our Startups Act, and I thank Congressman Lawler for his leadership on this bipartisan bill.

Around the country, early-stage entrepreneurs are developing new technologies, products, and services not in boardrooms but in shared workspaces, university labs, and community accelerators. At this stage, the most important thing they need is capital and, often, a chance to talk with potential investors. That is what makes events like demo days so important.

These are informational forums where startups share their business ideas, not investment pitches. Under earlier SEC guidance, even participating in one of these events could be considered a ``general solicitation,'' which, in turn, could block the startup from using key offering exemptions.

Although the SEC has since addressed this through rule 148, H.R. 3352 codifies those protections and ensures that demo day participation does not unintentionally violate securities laws, provided certain conditions are met.

This bill strikes the right balance. It doesn't weaken investor protections. It simply ensures our regulations don't punish small businesses for talking about their work.

H.R. 3352 supports entrepreneurship, encourages capital formation, and reflects how innovation actually happens.

Mr. Speaker, I urge my colleagues to support it, and I reserve the balance of my time.

Mr. Speaker, I yield such time as he may consume to the gentleman from New York (Mr. Lawler).

Mr. Speaker, in closing, H.R. 3352 supports entrepreneurship, encourages capital formation, and reflects how innovation actually happens. I urge my colleagues to support Mr. Lawler's bill, H.R. 3352.

Mr. Speaker, I yield back the balance of my time.