A bill to amend the Investment Advisers Act of 1940 to address the exemption of, and reporting by, certain private fund advisers, and for other purposes.

Sponsor: Mike Rounds (Republican-SD)February 12, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Lets more small investment firms avoid federal registration and adjusts the rules for inflation.

This bill would help more small investment firms avoid some federal rules. It would raise the amount of money they can manage before needing to follow certain government requirements. The bill would also make sure this amount is updated often to keep up with rising costs.

What Would Change

Currently, private fund advisers are exempt from certain federal registration if they manage less than $150,000,000, and this amount does not automatically adjust for inflation. If this bill passes, the exemption threshold would increase to $175,000,000, and the Securities and Exchange Commission would be required to adjust this amount for inflation every five years.

Key Provisions

Raises the amount of money private fund advisers can manage before needing to register from $150,000,000 to $175,000,000.
Requires the Securities and Exchange Commission to adjust this dollar amount for inflation every five years.
Mandates that inflation adjustments be based on the Consumer Price Index for All Urban Consumers.
Specifies that inflation adjustments would be rounded to the nearest $1,000,000.

View on Congress.gov

S 3880 · 119th Congress · February 12, 2026 · AI Summary by gemini-2.5-flash · 9/10

A bill to amend the Investment Advisers Act of 1940 to address the exemption of, and reporting by, certain private fund advisers, and for other purposes.

What Would Change

Key Provisions

Lobbying Activity