HR4130

HR4130, titled the Small Business Relief Act, was placed on the Union Calendar, Calendar No. 450, on 2026-02-25, indicating it has been reported out of committee and is awaiting floor consideration in the House. The bill was reported (Amended) by the Committee on Financial Services on the same day. The core of the bill amends Section 12(g)(1) of the Securities Exchange Act of 1934 to exclude qualified institutional buyers and institutional accredited investors when calculating holders of a security for purposes of the mandatory registration threshold. This effectively raises the bar for private companies to be forced into public registration, allowing them to remain private for longer. This legislation does not involve direct funding or appropriations. Instead, it offers regulatory relief by adjusting the criteria for mandatory public registration. The mechanism is a change in how 'holders of a security' are counted, specifically excluding sophisticated institutional investors from that count. This means that private companies can attract capital from these large investors without triggering the requirement to go public, thereby extending their private growth phase. There is no money trail in terms of government spending; rather, it is a structural change to market entry regulations. Structural winners from this bill, if enacted, would be private companies that wish to delay their public market entry, as they gain more flexibility in their capital raising strategies. The impact on publicly traded exchange operators like CME Group Inc. ($CME), Intercontinental Exchange, Inc. ($ICE), and Nasdaq, Inc. ($NDAQ) is indirect. While these exchanges profit from IPOs and subsequent trading, a delay in IPOs could marginally reduce their pipeline of new listings over time. However, the current market data for these tickers shows mixed performance: $CME is up +5.25% over 7 days, $ICE is up +6.12% over 7 days, and $NDAQ is up +2.32% over 7 days. All three are trading well within their 52-week ranges, with $CME at $310.87, $ICE at $166.92, and $NDAQ at $86.86. The recent positive 7-day performance for all three suggests that this legislative development is not currently a primary driver of their stock movements. The next legislative step for HR4130 is consideration on the House floor, as it has been placed on the Union Calendar. Given its recent reporting out of committee and placement on the calendar, the bill shows active momentum. The sponsor, Rep. Garbarino, is a Republican from New York, and the bill has one cosponsor. The bill was referred to the Committee on Financial Services, which reported it favorably. The bill's progress indicates it is moving through the legislative process, but it still requires a House vote, Senate consideration, and presidential assent to become law.