HALOS Act of 2023

Hozzl · 2024-01-04T20:56:14Z

Explore the details of House Bill 1553 HALOS Act of 2023 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Finance and Financial Sector. Stay informed on legislative developments.

1/4/2024, 8:56 PM

Summary of Bill HR 1553

The HALOS Act of 2023, also known as Bill 118 hr 1553, is a piece of legislation introduced in the US Congress aimed at promoting small business growth and entrepreneurship. The bill seeks to amend the Securities Act of 1933 to provide for an exemption from the registration requirements for certain events known as "demo days" or "pitch events" where entrepreneurs can showcase their business ideas to potential investors.

Under the HALOS Act, qualifying events must meet certain criteria, such as being sponsored by a government entity, non-profit organization, or educational institution, and not charging more than a nominal fee to participants. The bill also includes provisions to protect investors by requiring that all presentations at these events be made in a manner that does not include specific investment recommendations or solicitations.

Supporters of the HALOS Act argue that it will help small businesses access much-needed capital and foster innovation in the economy. Critics, however, raise concerns about the potential for fraud and abuse in these unregistered offerings. Overall, the HALOS Act of 2023 aims to strike a balance between facilitating investment in small businesses and protecting investors from potential risks. The bill is currently under consideration in Congress and has garnered bipartisan support.

Congressional Summary of HR 1553

Helping Angels Lead Our Startups Act of 2023 or the HALOS Act of 2023

This bill directs the Securities and Exchange Commission (SEC) to revise Regulation D, which exempts certain securities offerings from SEC registration requirements but prohibits general solicitation or general advertising with respect to such offerings. Under the bill, this prohibition shall not apply to events with specified kinds of sponsors—including angel investor groups unconnected to broker-dealers or investment advisers—where presentations or communications are made by or on behalf of an issuer, if

the advertising does not refer to any specific offering of securities by the issuer;
the sponsor does not provide investment recommendation or advice to attendees, engage in investment negotiations with attendees, charge certain fees, or receive certain compensation; and
no specific information regarding a securities offering is communicated beyond the type and amount of securities being offered, the amount of securities already subscribed for, and the intended use of proceeds from the offering.

In addition, the SEC is prohibited from requiring additional filings for a general solicitation or general advertising of a Regulation D security.

Read the Full Bill

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Current Status of Bill HR 1553

Bill HR 1553 is currently in the status of Bill Introduced since March 10, 2023. Bill HR 1553 was introduced during Congress 118 and was introduced to the House on March 10, 2023. Bill HR 1553's most recent activity was Placed on the Union Calendar, Calendar No. 250. as of December 12, 2023

Bipartisan Support of Bill HR 1553

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 1553

Primary Policy Focus

Finance and Financial Sector

Potential Impact Areas

Administrative law and regulatory proceduresBusiness investment and capitalFinancial services and investmentsHigher educationMarketing and advertisingSecuritiesSecurities and Exchange Commission (SEC)Social work, volunteer service, charitable organizations

Alternate Title(s) of Bill HR 1553

HALOS Act of 2023HALOS Act of 2023Helping Angels Lead Our Startups Act of 2023HALOS Act of 2023Helping Angels Lead Our Startups Act of 2023To require the Securities and Exchange Commission to revise rules relating to general solicitation or general advertising to allow for presentations or other communication made by or on behalf of an issuer at certain events, and for other purposes.

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