Constitution Index · H.R. 3422 · 2025-05-15
Promoting Opportunities for Non-Traditional Capital Formation Act
Latest official status (2025-06-24): Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Constitutional grade
B
Mostly sound
The bill directs the SEC's Office of the Advocate for Small Business Capital Formation to provide educational resources and host events for certain small businesses, and to meet annually with state securities commissions. This is a modest expansion of an existing federal office's functions within the SEC's established authority over securities regulation. It does not infringe on individual rights, and it encourages collaboration with state regulators rather than preempting them. The only minor concern is the federal role in providing educational resources, which could arguably be handled by states or private entities, but the SEC's involvement is closely tied to its core securities mission.
Article I, Section 8, Clause 3
SI-generated grade · passed automated checks (real Constitution citation, language rules) · not individually reviewed by a person · methodology · Report an error: hello@valuesforamerica.com
The five checks
Enumerated powers · passes
The SEC's authority derives from Congress's power to regulate interstate commerce under Article I, Section 8, Clause 3. Securities transactions are a well-established part of interstate commerce, and the SEC's Office of the Advocate for Small Business Capital Formation operates within that regulatory framework. Expanding the office's educational and collaborative functions is a reasonable exercise of the commerce power.
Bill of Rights · passes
The bill does not implicate any of the first ten amendments. It imposes no restrictions on speech, religion, assembly, press, petition, arms, quartering, search and seizure, self-incrimination, due process, takings, trial rights, or cruel and unusual punishment. It merely directs a federal office to provide educational resources and hold meetings.
Individual liberty · passes
The bill does not restrict any individual's freedom of person, property, speech, labor, or belief. It imposes no mandates or prohibitions on individuals. It only expands the functions of a government office to provide information and collaboration, which does not burden individual sovereignty.
Decentralization · passes
The bill does not consolidate decision-making at the federal level. It directs the SEC office to meet with state securities commissions to discuss collaboration, which respects state authority. The educational resources are informational and do not preempt state or local action. The federal role is limited to its existing securities jurisdiction, and the bill encourages coordination rather than centralization.
Due process and takings · passes
The bill does not affect due process rights or the Takings Clause. It imposes no penalties, no deprivation of property, and no procedural changes that would affect notice or hearing rights. It is purely administrative and informational.
Provenance
- Congress.gov: HR 3422 summary · fetched 2026-10-08 · official page ↗
Version history · never overwritten
| Grade | Graded | Rubric | Source hash | Status |
|---|---|---|---|---|
| B · #508 | 2026-10-10 | vfa-constitutional-grade/1.0 | fa3a3f5b8b97 | current |
Cite this
Values for America. “Constitutional grade: H.R. 3422, Promoting Opportunities for Non-Traditional Capital Formation Act.” VFA Constitution Index, grade 508 (rubric vfa-constitutional-grade/1.0), graded October 10, 2026. https://www.valuesforamerica.com/constitution-index/grades/508. Accessed 2026-10-20.
Permalink: https://www.valuesforamerica.com/constitution-index/grades/508
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