119TH CONGRESS 
1ST SESSION H. R. 3382 
AN ACT 
To require the Securities and Exchange Commission to carry 
out a study and rulemaking on the definition of the 
term ‘‘small entity’’ under the securities laws for pur-
poses of chapter 6 of title 5, United States Code, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Entity Update 
Act’’. 
SEC. 2. STUDIES, REPORTS, AND RULES REGARDING SMALL 
ENTITIES. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘Commission’’ means the Securi-
ties and Exchange Commission; and 
(2) the term ‘‘small entity’’— 
(A) has the meaning given the term in sec-
tion 601 of title 5, United States Code, with re-
spect to the activities of the Commission; and 
(B) includes any definition established by 
the Commission of the term ‘‘small business’’, 
‘‘small organization’’, ‘‘small governmental ju-
risdiction’’, or ‘‘small entity’’ under paragraph 
(3), (4), (5), or (6), respectively, of section 601 
of title 5, United States Code, with respect to 
the activities of the Commission. 
(b) STUDIES AND REPORTS.—Not later than 1 year 
after the date of enactment of this Act, and again 5 years 
thereafter, the Commission shall— 
(1) conduct a study of the definition of the 
term ‘‘small entity’’ with respect to the activities of 
the Commission for the purposes of chapter 6 of 
title 5, United States Code, which shall consider—
(A) the extent to which the definition of 
the term ‘‘small entity’’, as in effect during the 
period in which the study is conducted, aligns 
with the findings and declarations made under 
section 2(a) of the Regulatory Flexibility Act (5 
U.S.C. 601 note); 
(B) the amount by which financial markets 
in the United States have grown since the last 
time the Commission amended the definition of 
the term ‘‘small entity’’, if applicable; and 
(C) how the Commission should define the 
term ‘‘small entity’’ to ensure that a meaningful 
number of entities would fall under that defini-
tion; and 
(2) submit to Congress a report that includes— 
(A) the results of the applicable study con-
ducted under paragraph (1); and 
(B) specific and detailed recommendations 
on the ways in which the Commission could 
amend the definition of the term ‘‘small entity’’ 
to— 
(i) be consistent with the results de-
scribed in subparagraph (A); and 
(ii) expand the number of entities cov-
ered by such definition.
(c) RULEMAKING.—Concurrently with, or after the 
completion of, each study required under subsection (b), 
the Commission shall, subject to public notice and com-
ment, revise the rules of the Commission consistent with 
the results of such study. 
(d) INFLATION ADJUSTMENTS.—After the Commis-
sion issued the final rule revisions required under sub-
section (c), and every 5 years thereafter, the Commission 
shall adjust any dollar figures under the definition of small 
entity established by the Commission to reflect the change 
in the Consumer Price Index for All Urban Consumers 
published by the Bureau of Labor Statistics of the Depart-
ment of Labor. 
Passed the House of Representatives July 21, 2025. 
Attest: 
Clerk.
119TH CONGRESS 
1ST SESSION 
H. R. 3382 
AN ACT 
To require the Securities and Exchange Commis-
sion to carry out a study and rulemaking on the 
definition of the term ‘‘small entity’’ under the 
securities laws for purposes of chapter 6 of title 
5, United States Code, and for other purposes.