Support for Legislation Considered at Committee Markup

Dear Chairman Hill and Ranking Member Waters:

The U.S. Chamber of Commerce writes to express our support for certain bills the Committee will be considering at its March 4 markup. The Chamber commends the Committee for its continued work to advance capital formation legislation and to improve the financial regulatory architecture in the United States.

The Chamber looks forward to working with the Committee as these bills advance through the legislative process.

The Chamber supports the following bills:

H.R. 4171, the Small Entrepreneurs Empowerment and Development (SEED) Act of 2025

This bill provides an exemption from state and federal registration requirements for "micro-offerings" that do not exceed $500,000 in the aggregate. This exemption would benefit entrepreneurs who are looking to raise relatively small amounts of capital and cannot afford costly legal and registration requirements. Importantly, this bill would also prevent bad actors from participating in such offerings. The Chamber also supports the provision in an expected amendment in the nature of a substitute that would index the $500,000 limit for inflation every five years.

H.R. 7127, the Restoring Secondary Market Trading Act

This bill and the amendment in the nature of a substitute would provide legal certainty for small public companies and prevent duplicative regulation for the secondary trading of certain stocks. Currently, a patchwork of state regulation negatively affects the trading liquidity and efficiency of small company stocks. The legislation would rightfully constitute a national market for these stocks which will facilitate capital formation and enhanced investor protection.

H.R. 6955, the Main Street Capital Access Act

The Main Street Capital Access Act is an important step toward modernizing the regulatory framework, improving transparency, and ensuring that financial institutions of all sizes can continue to drive economic opportunity. The Chamber has been particularly supportive of the following priorities:

· Tailoring of Bank Regulation - H.R. 6955 requires federal regulators to tailor rules and supervisory expectations to the size, risk profile, and business model of individual institutions. Tailored regulation ensures that smaller banks are not forced to operate under one-size--fits---all frameworks designed for the largest global firms-a dynamic that can distort competition and accelerate consolidation. Fixed regulatory thresholds, even when initially grounded in sound policy, quickly lose relevance as the economy evolves and can impose artificial limits on growth, geographic reach, and sector expansion. Indexing bank regulatory thresholds will give banks the flexibility to grow and continue fueling investment, innovation, and opportunity.

· Fair and Transparent Supervision Reform - The bill would modernize the CAMELS rating system by establishing objective, quantifiable criteria and updating weighting methodologies to ensure ratings accurately reflect an institution's true risk profile. It also requires regulators to provide timely, well-documented feedback and base supervisory determinations on clear, transparent standards. These reforms would enhance consistency, reduce uncertainty, and allow financial institutions to devote more resources to supporting small businesses and local economic growth.

· Promoting Bank Competition and Merger Clarity - H.R. 6955 would modernize and bring greater transparency to the bank merger review process, which today is often prolonged, unpredictable, and guided by non-public standards. Without clearer, more consistent criteria, merger policy risks accelerating the emergence of a barbell banking system, where only the largest and smallest institutions remain viable-reducing competition, limiting credit availability, and weakening the financial system. By establishing transparent timelines and accountable review procedures, the Main Street Act helps ensure merger oversight supports a healthy, competitive banking ecosystem rather than unintentionally driving further concentration.

We thank the Committee for their work on these bills and look forward to serving as a resource for members and their staff.

Sincerely,

Mike Flood
Senior Vice President
Center for Capital Markets Competitiveness
U.S. Chamber of Commerce

cc: Members of the House Committee on Financial Services