What does Preamble of Small Entity Update Act do?

This bill requires the Securities and Exchange Commission (SEC) to conduct a study and rulemaking regarding the definition of 'small entity' under securities laws. The study and rulemaking pertain to chapter 6 of title 5, United States Code.

What does SHORT TITLE. of Small Entity Update Act do?

This bill is formally titled the Small Entity Update Act

What does STUDIES, REPORTS, AND RULES REGARDING SMALL ENTITIES. of Small Entity Update Act do?

This section defines terms related to small entities for the purposes of the Securities and Exchange Commission (SEC). The SEC is defined as 'the Securities and Exchange Commission'. The term 'small entity' incorporates the definition from section 601 of title 5, United States Code, and includes definitions established by the SEC. The SEC must conduct a study of the 'small entity' definition within one year of the Act's enactment and every five years thereafter. The study must consider the alignment of the definition with the Regulatory Flexibility Act, the growth of financial markets, and how to ensure a meaningful number of entities are covered. The SEC must submit a report to Congress detailing the study's results and providing recommendations for amending the 'small entity' definition. Following each study, the SEC must revise its rules, subject to public notice and comment, to align with the study's findings. The SEC must adjust dollar figures within the 'small entity' definition for inflation every five years, using the Consumer Price Index.

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Small Entity Update Act

Last updated: 7/22/2025 · Introduced: 5/14/2025

Author: Ann Wagner (R-MO)

TL;DR (AI)

The Securities and Exchange Commission (SEC) must conduct a study of the 'small entity' definition within one year of the Act's enactment and every five years thereafter.
The SEC must submit a report to Congress detailing the study's results and providing recommendations for amending the 'small entity' definition.
The SEC must adjust dollar figures within the 'small entity' definition for inflation every five years, using the Consumer Price Index.

119th Congresspassed houseS. 2924(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

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