TLDR:
– The US Securities and Exchange Commission (SEC) has proposed new rules to update the definition of ‘qualifying’ venture capital (VC) funds.
– The proposed rules aim to raise the dollar-threshold for VC funds to be covered by regulations and adjust for inflation every five years.
The US Securities and Exchange Commission (SEC) has proposed new rules to update the definition of ‘qualifying’ venture capital (VC) funds. The proposed rules, which were called for under a 2018 congressional mandate, aim to raise the dollar-threshold for VC funds to be covered by a principal statute regulating investment funds. The SEC believes that this adjustment is necessary to keep pace with inflation and ensure that the regulations remain effective in overseeing VC funds. If approved, the new rules would provide greater clarity and consistency in the treatment of VC funds under the securities laws.
