S. 3351 — Developing and Empowering our Aspiring Leaders Act of 2025

This section directs the Securities and Exchange Commission (SEC), not later than 180 days after enactment, to revise its venture capital fund regulations (17 CFR 275.203(l)-1 or successors). The revisions (1) expand the definition of qualifying investment to include equity securities of qualifying portfolio companies acquired directly or in secondary transactions and investments in other venture capital funds; and (2) condition venture capital fund status on the fund holding, immediately after any asset acquisition, no more than 49% of aggregate capital contributions and uncalled committed capital (excluding short-term holdings) in other venture capital funds or qualifying investments acquired secondarily. (As background, these regulations exempt advisers to qualifying venture capital funds from SEC registration under the Investment Advisers Act of 1940.)