HALOS Act of 2025
HALOS Act of 2025
Plain Language Summary
# HALOS Act of 2025 Summary **What It Does:** The HALOS Act would allow the SEC to relax advertising restrictions for certain startup pitch events and presentations. Currently, companies seeking to raise money through unregistered securities offerings cannot advertise or promote these offerings publicly. This bill would allow companies to present and demonstrate their products at events—like pitch competitions or investor conferences—without these restrictions applying, as long as they don't specifically mention the securities offering itself or make direct investment pitches at the event. **Who It Affects & Key Rules:** The bill primarily benefits startups, angel investors, and event organizers trying to connect entrepreneurs with potential backers. To qualify for this exemption, event sponsors cannot charge excessive fees, provide investment advice, or negotiate deals directly with attendees.
Companies can still showcase their products and business models; they just cannot use the event to actively solicit investments in specific securities offerings. The bill targets "angel investors" and informal startup funding networks rather than large institutional investors. **Current Status:** The bill has passed the House of Representatives and is pending further action in Congress. It enjoys bipartisan support among those who view it as reducing regulatory barriers to startup funding.
CRS Official Summary
Helping Angels Lead Our Startups Act of 2025 or the HALOS Act of 2025This 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, ifthe 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; andno 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.
Latest Action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.