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H.R. 3352 · House bill · 119th Congress
This bill directs the Securities and Exchange Commission (SEC) to exempt presentations and communications (e.g., product demonstrations) made at certain events from advertising and solicitation restrictions under Regulation D. (Regulation D 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 does not apply to events 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 event sponsor does not provide investment recommendations 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 unsubscribed amount, and the intended use of proceeds from the offering.
Exempt events must involve participation by more than one issuer and must be sponsored by specified entity types, including angel investor groups unconnected to broker dealers or investment advisors. Such events generally may not be held in facilities owned or operated by a religious organization. If such an event is virtual, online participation must be limited to investors associated with the sponsor organization, accredited investors, or individuals invited to the event based on industry or investment experience.
This Act may be cited as the “Helping Angels Lead Our Startups Act of 2025” or the “HALOS Act of 2025”.
(a) Definitions.— For purposes of this section and the revision of rules required under this section:
(1) Angel investor group.— The term angel investor group means any group that—
(A) is composed of accredited investors interested in investing personal capital in early-stage companies;
(B) holds regular meetings and has defined processes and procedures for making investment decisions, either individually or among the membership of the group as a whole; and
(C) is neither associated nor affiliated with brokers, dealers, or investment advisers.
(2) Issuer.— The term issuer means an issuer that is a business, is not in bankruptcy or receivership, is not an investment company, and is not a blank check, blind pool, or shell company.
(b) In general.— Not later than 6 months after the date of enactment of this Act, the Securities and Exchange Commission shall revise Regulation D (17 CFR 230.500 et seq.) to require that in carrying out the prohibition against general solicitation or general advertising contained in section 230.502(c) of title 17, Code of Federal Regulations, the prohibition shall not apply to a presentation or other communication made by or on behalf of an issuer which is made at an event—
(1) sponsored by—
(A) the United States or any territory thereof, the District of Columbia, any State, a federally recognized Indian Tribe, a political subdivision of any State, territory, or federally recognized Indian Tribe, or any agency or public instrumentality of any of the foregoing;
(B) a college, university, or other institution of higher education;
(C) a nonprofit organization;
(D) an angel investor group;
(E) an incubator or accelerator;
(F) a venture forum, venture capital association, or trade association, other than an association created solely for the purpose of sponsoring an event described under this subsection; or
(G) any other group, person, or entity as the Securities and Exchange Commission may determine by rule;
(2) that is not held in any facility that is owned or operated by a religious organization, other than an institution of higher education that is accredited and operated primarily for post-secondary education;
(3) where any advertising for the event does not reference any specific offering of securities by the issuer;
(4) the sponsor of which—
(A) does not make investment recommendations or provide investment advice to event attendees;
(B) does not engage in an active role in any investment negotiations between the issuer and investors attending the event;
(C) does not charge event attendees any fees other than reasonable administrative fees;
(D) does not receive any compensation for making introductions between investors attending the event and issuers, or for investment negotiations between such parties;
(E) makes readily available to attendees a disclosure not longer than one page in length, as prescribed by the Securities and Exchange Commission, describing the nature of the event and the risks of investing in the issuers presenting at the event; and
(F) does not receive any compensation with respect to such event that would require registration of the sponsor as a broker or a dealer under the Securities Exchange Act of 1934, or as an investment advisor under the Investment Advisers Act of 1940; and
(5) where no specific information regarding an offering of securities by the issuer is communicated or distributed by or on behalf of the issuer, other than—
(A) that the issuer is in the process of offering securities or planning to offer securities;
(B) the type and amount of securities being offered;
(C) the amount of securities being offered that have already been subscribed for; and
(D) the intended use of proceeds of the offering.
(c) Rule of construction.— Subsection (b) may only be construed as requiring the Securities and Exchange Commission to amend the requirements of Regulation D with respect to presentations and communications, and not with respect to purchases or sales.
(d) No pre-existing substantive relationship by reason of event.— Attendance at an event described under subsection (b) shall not qualify, by itself, as establishing a pre-existing substantive relationship between an issuer and a purchaser, for purposes of Rule 506(b).