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 are specifically for purposes of chapter 6 of title 5, United States Code. The bill's stated purpose is to address the definition of 'small entity' within the context of securities laws.

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

This Act 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 for the purposes of studying and potentially revising the definition of 'small entity' as it relates to the Securities and Exchange Commission (SEC). The SEC is required to 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 alignment with the Regulatory Flexibility Act, growth of financial markets, and how to define 'small entity' to include a meaningful number of entities. The SEC must submit a report to Congress detailing the study's results and providing recommendations for amending the definition to expand coverage. Following each study, the SEC is directed to 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: 9/29/2025 · Introduced: 9/29/2025

Author: Katie Britt (R-AL)

TL;DR (AI)

The Securities and Exchange Commission (SEC) must conduct a study every five years to evaluate the definition of 'small entity' under securities laws, considering factors like the Regulatory Flexibility Act and financial market growth.
The SEC is required to submit a report to Congress detailing the study's findings and recommending potential changes to 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 Congressin committeeOfficial page

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

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