H.R. 2610, a bill to amend the Securities Exchange Act of 1934 to specify certain registration statement contents for emerging growth companies, to permit issuers to file draft registration statements with the Securities and Exchange Commission for confid

H.R. 2610 would allow emerging growth companies to submit only two years of profit and loss statements to a national securities exchange and the Securities and Exchange Commission (SEC) when registering their securities. Under current law, companies must submit three years of such statements. In addition, the bill would permit issuers to confidentially submit a draft registration statement to the SEC for review before filing it publicly; however, because the SEC already reviews confidential registration statements, CBO expects that implementing that provision would not affect the federal budget.

CBO estimates that implementing the bill could reduce the SEC’s costs by an insignificant amount each year. However, because the SEC is authorized to collect fees each year to offset its annual appropriation, CBO expects that the agency would adjust fees to match lower operating costs. On that basis, CBO estimates that the net effect on discretionary spending over the 2023-2028 period would be negligible, assuming appropriation actions consistent with that authority.