The House of Representatives recently passed the Incentivizing New Ventures and Economic Strength Through Capital Formation Act of 2025, or the INVEST Act of 2025. The bill is effectively a bundle of capital formation bills, most of which aim to incentivize capital formation in both public and private markets.

The INVEST Act contains many improvements that reduce regulatory burdens. For instance, the bill reduces the number of years emerging growth companies must provide financial statements for from three to two years, allows funds and advisors to disseminate disclosures via electronic methods, and expands confidential draft registrations from emerging growth companies to all issuers.

Many of the improvements in the bill also broaden investor access. However, some provisions in the bill miss the mark on who really needs regulatory relief and could result in fewer investment opportunities and less investor freedom. Congress should move forward with the improvements found in the INVEST Act, but reconsider certain provisions that could worsen conditions for issuers and investors.

• How the INVEST Act Alleviates Private Market Woes
• How the INVEST Act Misses the Mark on What Needs to Be Done
• Conclusion

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