SEC raises crowdfunding threshold, trading investor protection for startup access
S. 3662 — ACCESS Act of 2026 · Filed by Dave McCormick (R-PA) · 1 cosponsor · Introduced Jan 15, 2026 · Referred to committee
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What it does
This bill raises the threshold at which small companies using crowdfunding to raise capital must have their financial statements reviewed by an independent accountant, from $100,000 to $250,000 in offering size. It also allows the SEC to increase that threshold further to $400,000 on recommendation of small-business and investor advocates. The effect is to reduce compliance costs for smaller crowdfunded offerings.
Why we flagged it
The bill's operative mechanism is a straightforward regulatory threshold adjustment designed to reduce compliance burden on small issuers using crowdfunding exemptions. It is not a deregulation in the sense of removing a rule, but rather a recalibration of when an existing rule applies.
What the text implies
- Investors in crowdfunded offerings between $100k–$250k will no longer receive independent financial statement review, shifting information asymmetry risk to retail investors who may lack expertise to evaluate unreviewed disclosures.
- The SEC's discretionary authority to adjust the threshold to $400k creates regulatory uncertainty and may incentivize lobbying by small-business groups to push the ceiling higher, potentially eroding investor protections incrementally.
- Crowdfunding platforms may face reduced liability exposure if they can argue that unreviewed financials are now 'compliant' under the new threshold, even though investor harm from fraud or misstatement remains possible.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Small businesses and entrepreneurs gain lower compliance costs and easier access to crowdfunding capital, which is a public benefit. However, investors in crowdfunded offerings below the new threshold lose the protection of independent financial review, creating an asymmetric information risk that may harm retail investors who lack sophistication to evaluate unreviewed financials.
Who stands to gain
- small businesses and startups using crowdfunding
- crowdfunding platforms (reduced compliance friction)
- accounting firms (fewer reviews required, but offset by lower compliance costs for issuers)
Named in the bill
SEC (Securities and Exchange Commission), Office of the Advocate for Small Business Capital Formation, Office of the Investor Advocate, Securities Act of 1933, Section 4A
Where it stands
1 cosponsor: 1 Democrats.
- Jan 15, 2026 — Introduced · Congress.gov: “Introduced in Senate”
- Jan 15, 2026 — Referred to Senate Committee on Banking, Housing, and Urban Affairs · Congress.gov: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (1,117 characters) on Aug 14, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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