ATR Supports the INVEST Act

On December 2^nd, 2025, Capital Markets Subcommittee Chairwoman Ann Wagner (R-Mo.) cosponsored a bill to increase capital markets access for businesses and investors. The bill, titled the INVEST Act, consolidates measures from over 20 bipartisan bills.  

The INVEST Act is good policy that will benefit investors and businesses looking to raise capital alike.  

The number of U.S. public companies has plummeted from roughly 8,800 in 1997 to fewer than 4,000 today. That steep drop doesn’t merely reflect changing market conditions, it reflects a system weighted heavily against smaller firms, rural entrepreneurs, and small-scale retail investors. Regulatory burdens, outdated qualifications for investors, and arcane barriers to raising funds have created a two-tiered capital system: one for institutions and large investors, and one for everyone else. 

The INVEST Act is a comprehensive effort to reverse that trend and to restore capital markets as America’s engine of innovation and growth.  

Listed below are some of the key provisions characterizing the pro-growth agenda in the INVEST Act:  

Section 103: Letting Startups Pitch Without Triggering SEC Trouble 

If a startup founder gives a presentation about their business idea at a university-hosted pitch event or a nonprofit-sponsored demo day, the SEC might treat it as general solicitation, meaning the company can no longer rely on simpler rules for private fundraising. That makes it risky for early-stage businesses to even talk about their plans in public. 

Section 103 of the INVEST Act would fix this by no longer categorizing educational and industry event presentations as illegal solicitation. That means a founder can stand up at an accelerator, show their pitch deck, and invite interest from investors without hiring expensive lawyers or risking an SEC violation. It is a commonsense reform that lets new businesses find capital without violating bureaucratic technicalities. 

Section 104: Expanding Crowdfunding to Fit Real Startup Needs 

Crowdfunding was supposed to help ordinary investors support early-stage companies, but the SEC-imposed $5 million annual cap has proven too low for many growth-focused startups. Raising $5 million barely covers early development costs in biotech, clean tech, or advanced manufacturing. 

The INVEST Act raises the cap to $10 million, letting companies raise more capital from a broader group of investors. It makes crowdfunding viable for companies beyond just local coffee shops or boutique brands. Importantly, the disclosure and investor protection rules still apply, but startups can now use this model to fund meaningful innovation. 

Section 201: Updating the Outdated Accredited Investor Rule 

Under current law, only people who make over $200,000 a year (or have $1 million in net assets) can invest in private offerings, like venture capital, pre-IPO shares, or private real estate funds. The assumption is that wealth equals sophistication, and anyone under that threshold needs government protection. 

Section 201 takes a smarter approach by creating an exam-based pathway and qualifying certain professional licenses, regardless of income or wealth. This means someone with a CFA certification or a CPA, for example, can invest in startups and private funds.  

Section 202: Giving Teachers and Nonprofit Workers Better Retirement Options 

Most retirement plans for public school teachers, hospital staff, and nonprofit employees are structured under 403(b) rules. But these plans have fewer investment options than corporate 401(k)s by law, not by logic. 403(b) plans are banned from using collective investment trusts (CITs), even though these low-cost funds are commonly used by 401(k) plans. 

Section 202 fixes this discrepancy by allowing 403(b) plans invest in the same kinds of diversified, low-fee funds that 401(k)s already can. This gives public sector and nonprofit employees the same access to retirement tools that their private-sector peers have, helping them grow their savings faster and retire with more security. 

Conclusion 

For America’s entrepreneurs, investors, and retirees, the INVEST Act would represent an exciting opportunity to expand prosperity and wealth through deregulation and cutting red-tape. There is no reason why existing rules should shut out individuals from wealth-building opportunities because of their net worth, employer, or company size. The INVEST Act is a renewed pledge to increase opportunities for all Americans. Lawmakers should vote Yes on the INVEST Act.