[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2924 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 2924

To require the Securities and Exchange Commission to carry out a study 
and rulemaking on the definition of the term ``small entity'' under the 
  securities laws for purposes of chapter 6 of title 5, United States 
                     Code, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2025

  Mrs. Britt (for herself and Mr. Kim) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To require the Securities and Exchange Commission to carry out a study 
and rulemaking on the definition of the term ``small entity'' under the 
  securities laws for purposes of chapter 6 of title 5, United States 
                     Code, 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 ``Small Entity Update Act''.

SEC. 2. STUDIES, REPORTS, AND RULES REGARDING SMALL ENTITIES.

    (a) Definitions.--In this section--
            (1) the term ``Commission'' means the Securities and 
        Exchange Commission; and
            (2) the term ``small entity''--
                    (A) has the meaning given the term in section 601 
                of title 5, United States Code, with respect to the 
                activities of the Commission; and
                    (B) includes any definition established by the 
                Commission of the term ``small business'', ``small 
                organization'', ``small governmental jurisdiction'', or 
                ``small entity'' under paragraph (3), (4), (5), or (6), 
                respectively, of section 601 of title 5, United States 
                Code, with respect to the activities of the Commission.
    (b) Studies and Reports.--Not later than 1 year after the date of 
enactment of this Act, and again 5 years thereafter, the Commission 
shall--
            (1) conduct a study of the definition of the term ``small 
        entity'' with respect to the activities of the Commission for 
        the purposes of chapter 6 of title 5, United States Code, which 
        shall consider--
                    (A) the extent to which the definition of the term 
                ``small entity'', as in effect during the period in 
                which the study is conducted, aligns with the findings 
                and declarations made under section 2(a) of the 
                Regulatory Flexibility Act (5 U.S.C. 601 note);
                    (B) the amount by which financial markets in the 
                United States have grown since the last time the 
                Commission amended the definition of the term ``small 
                entity'', if applicable; and
                    (C) how the Commission should define the term 
                ``small entity'' to ensure that a meaningful number of 
                entities would fall under that definition; and
            (2) submit to Congress a report that includes--
                    (A) the results of the applicable study conducted 
                under paragraph (1); and
                    (B) specific and detailed recommendations on the 
                ways in which the Commission could amend the definition 
                of the term ``small entity'' to--
                            (i) be consistent with the results 
                        described in subparagraph (A); and
                            (ii) expand the number of entities covered 
                        by such definition.
    (c) Rulemaking.--Concurrently with, or after the completion of, 
each study required under subsection (b), the Commission shall, subject 
to public notice and comment, revise the rules of the Commission 
consistent with the results of such study.
    (d) Inflation Adjustments.--After the Commission issued the final 
rule revisions required under subsection (c), and every 5 years 
thereafter, the Commission shall adjust any dollar figures under the 
definition of small entity established by the Commission to reflect the 
change in the Consumer Price Index for All Urban Consumers published by 
the Bureau of Labor Statistics of the Department of Labor.
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