Encouraging Local Emerging Ventures and Economic Growth Act of 2025

Floor Speech

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Mrs. WAGNER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3301) to amend the Securities Exchange Act of 1934 to specify certain registration statement contents for emerging growth companies, to permit issuers to file draft registration statements with the Securities and Exchange Commission for confidential review, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 3301

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 ``Encouraging Local Emerging Ventures and Economic Growth Act of 2025'' or the ``ELEVATE Act of 2025''. SEC. 2. REGISTRATION STATEMENTS.

Section 12(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(b)) is amended--

(1) in paragraph (1)(K), by striking ``years,'' and inserting ``years (or, in the case of an emerging growth company, not more than the two preceding years),''; and

(2) by adding at the end the following: ``Any issuer may confidentially submit to the Commission a draft registration statement for confidential nonpublic review by the staff of the Commission prior to public filing, provided that the initial confidential submission and all amendments thereto shall be publicly filed with the Commission not later than 10 days before listing on a national securities exchange. Notwithstanding any other provision of this title, the Commission shall not be compelled to disclose any information provided to or obtained by the Commission pursuant to this subsection. For purposes of section 552 of title 5, this subsection shall be considered a statute described in subsection (b)(3)(B) of such section 552. Information described in or obtained pursuant to this subsection shall be deemed to constitute confidential information for purposes of section 24.''.

Mr. Speaker, I rise today in strong support of H.R. 3301, the ELEVATE Act, and thank Congressman Nunn for his leadership on this forward- looking and bipartisan bill.

One of the key successes of the JOBS Act of 2012 was the creation of emerging growth companies, or EGCs, small and midsized firms given tailored disclosure requirements to encourage them to go public. These companies are a major source of innovation, job creation, and economic growth.

Today, over 90 percent of initial public offerings are filed by EGCs, but when an EGC spins off part of its business to create a new public company, that spinoff does not currently get the same treatment, despite originating from a company already recognized as an emerging growth company.

H.R. 3301 fixes this inconsistency. It ensures that spinoffs from EGCs are allowed to provide 2 years of audited financials, just like when a standard EGC goes public. This helps reduce redundant compliance costs while maintaining full investor protections.

This is a smart and targeted update to our securities laws. It honors the original intent of the JOBS Act: to make it easier, not harder, for innovative companies to enter the public markets.
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Mrs. WAGNER. Mr. Speaker, Mr. Nunn's ELEVATE Act is a smart, targeted update to our securities law.

I urge all my colleagues to support H.R. 3301, and I yield back the balance of my time.

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