Developing and Empowering our Aspiring Leaders Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3351 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 3351

    To require the Securities and Exchange Commission to revise the 
 definition of a qualifying investment, for purposes of the exemption 
     from registration for venture capital fund advisers under the 
 Investment Advisers Act of 1940, to include an equity security issued 
   by a qualifying portfolio company and to include an investment in 
         another venture capital fund, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                            December 4, 2025

Mr. Rounds (for himself and Mr. Warnock) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

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                                 A BILL


 
    To require the Securities and Exchange Commission to revise the 
 definition of a qualifying investment, for purposes of the exemption 
     from registration for venture capital fund advisers under the 
 Investment Advisers Act of 1940, to include an equity security issued 
   by a qualifying portfolio company and to include an investment in 
         another venture capital fund, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Developing and Empowering our 
Aspiring Leaders Act of 2025''.

SEC. 2. REVISIONS OF REGULATORY DEFINITIONS.

    Not later than 180 days after the date of enactment of this Act, 
the Securities and Exchange Commission shall--
            (1) revise the definition of a qualifying investment under 
        section 275.203(l)-1(c) of title 17, Code of Federal 
        Regulations, or any successor regulation--
                    (A) to include an equity security issued by a 
                qualifying portfolio company, whether acquired directly 
                from the company or in a secondary acquisition; and
                    (B) to specify that an investment in another 
                venture capital fund (as defined in section 275.203(l)-
                1(a) of title 17, Code of Federal Regulations, or any 
                successor regulation) is a qualifying investment under 
                that definition; and
            (2) revise section 275.203(l)-1(a) of title 17, Code of 
        Federal Regulations, or any successor regulation, to require, 
        as a condition of a private fund qualifying as a venture 
        capital fund under that provision, that, immediately after the 
        acquisition of any asset, the fund holds not more than 49 
        percent of the amount of the aggregate capital contributions 
        and uncalled committed capital (excluding short-term holdings) 
        of the fund in--
                    (A) 1 or more venture capital funds; or
                    (B) qualifying investments acquired in a secondary 
                acquisition, valued at cost or fair value, consistently 
                applied by the fund.
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