Section 1. Short title
This Act may be cited as the Developing and Empowering our Aspiring Leaders Act of 2022.
Section 2. Definitions
Not later than 180 days after the date of enactment of this Act, the Securities and Exchange Commission shall—
(1) revise the definition of a qualifying investment under paragraph (c) of section 275.203(l)–1 of title 17, Code of Federal Regulations—
(A) to include an equity security issued by a qualifying portfolio company, whether acquired directly from the company or in a secondary acquisition; and
(B) to specify that an investment in another venture capital fund is a qualifying investment under that definition; and
(2) revise paragraph (a) of section 275.203(l)–1 of title 17, Code of Federal Regulations, to require, as a condition of a private fund qualifying as a venture capital fund under that paragraph, that the qualifying investments of the private fund are—
(A) predominantly qualifying investments that were acquired directly from a qualifying portfolio company; or
(B) predominantly qualifying investments in another venture capital fund or other venture capital funds.