Key Takeaways
- • The SEC proposed on January 7, 2026 to raise the asset-based thresholds that define small entities among registered investment companies, investment advisers, and business development companies under the Regulatory Flexibility Act.
- • The proposal would update how related funds' assets are aggregated when determining small-entity status.
- • Inflation adjustments to the asset-based thresholds would be made by order every 10 years.
- • The public comment period remains open until 60 days after publication of the proposing release in the Federal Register.
Summary
The Securities and Exchange Commission on January 7, 2026 proposed amendments to the rules that define which registered investment companies, investment advisers, and business development companies qualify as small entities for purposes of the Regulatory Flexibility Act (RFA), according to the SEC's published release. The RFA requires federal agencies to analyze and minimize the significant economic impact of their rulemaking on small entities.
According to the SEC, the proposal would raise the small entity thresholds for investment companies and advisers so the Commission can better tailor its regulatory analyses to the challenges these smaller firms face. SEC Chairman Paul S. Atkins said the proposal, consistent with the agency's effort to modernize regulatory requirements, would more accurately capture the types and numbers of investment advisers and investment companies that are considered small.
Specifically, the proposal would increase the asset-based thresholds under which investment companies and advisers are deemed small entities, update how related funds' assets are aggregated for purposes of that definition, and provide for inflation adjustments to the thresholds by order every 10 years. The proposing release will be published in the Federal Register, and the comment period will run for 60 days from that publication date.
The available source material for this story is limited to the SEC's release and related headlines; the original Cryptonews.net article could not be retrieved, so specific dollar thresholds are not reported here.
According to the SEC, the proposal would raise the small entity thresholds for investment companies and advisers so the Commission can better tailor its regulatory analyses to the challenges these smaller firms face. SEC Chairman Paul S. Atkins said the proposal, consistent with the agency's effort to modernize regulatory requirements, would more accurately capture the types and numbers of investment advisers and investment companies that are considered small.
Specifically, the proposal would increase the asset-based thresholds under which investment companies and advisers are deemed small entities, update how related funds' assets are aggregated for purposes of that definition, and provide for inflation adjustments to the thresholds by order every 10 years. The proposing release will be published in the Federal Register, and the comment period will run for 60 days from that publication date.
The available source material for this story is limited to the SEC's release and related headlines; the original Cryptonews.net article could not be retrieved, so specific dollar thresholds are not reported here.
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