He encouraged the Committee to explore both broad and targeted amendments to the rule, noting that while capital raised under Regulation A has surpassed that raised under Regulation Crowdfunding and rule 504 combined, it remains a fraction of that raised through rules 506(b) and 506(c). Efforts to boost adoption—such as raising the offering cap from $50 million to $75 million in 2021—have not spurred significant new activity, with the number of Regulation A offerings declining over the past two years.

The SEC chair posed several questions to the Committee aimed at making Regulation A more accessible. They included whether allowing at-the-market offerings—currently prohibited—would enhance capital access without undermining investor protections, and whether preempting state regulation for secondary resales under Tier 2 could improve liquidity. He also noted the rule’s limited geographic uptake, concentrated in six states, and called for analysis of why most other states saw two or fewer offerings.