Risk Disclosure and Investor Attestation Act

# Risk Disclosure and Investor Attestation Act (HR 145) - Plain Language Summary **What the bill would do:** This bill would make it easier for regular people to invest in private companies by changing who qualifies as an "accredited investor." Currently, only wealthy individuals or those with significant investment experience can legally participate in private investment opportunities. Under this bill, someone could become eligible simply by signing a statement certifying that they understand the risks involved—without needing to meet strict income or net worth requirements. **Who it affects and key provisions:** The bill primarily affects individual investors and private companies seeking capital. Private companies often prefer selling shares only to accredited investors because these are people assumed to have the financial resources to handle potential losses.

By lowering the barrier to entry, the bill would allow more people to invest in startups and private businesses. However, it removes some of the financial protections currently in place—instead of verifying an investor's actual financial stability, the bill relies on self-certification that the person understands the risks. **Current status:** HR 145 is currently in committee and has not yet been voted on by the full House of Representatives.