Small companies raising money under the SEC's Regulation A (a simplified path for smaller stock offerings) currently have to wait for the SEC to review and qualify each new offering statement, which can take weeks or months. This bill would let companies that already had one offering successfully qualified by the SEC skip the review for future offerings of substantially similar securities — as long as each new class is under $5 million and they stay within the overall Regulation A limits. It's aimed at making it faster and cheaper for smaller businesses to raise capital from investors.
Congressional Summary
Regulation Advancement for Capital Enhancement Act of 2025 or the RACE Act of 2025This bill allows issuers with offerings that were previously exempted from securities registration requirements to issue an additional class of securities if certain criteria are met.Specifically, this bill allows an issuer who issued securities under Regulation A (a small offering of securities exempt from registration requirements) to issue an additional class of securities if the securities in the additional class are substantially similar to the original class and the offering amount does not exceed specified dollar limits. However, the securities offered in the additional class are not required to have the same nature or terms.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-05-01
- Date Added
- 2026-04-15