Hearing Entitled: From Wall Street to Main Street: The Future of How America Invests

The GOP Financial Services Subcommittee on Capital Markets held a hearing on June 26, 2026, titled "From Wall Street to Main Street: The Future of How America Invests." The hearing focused on the evolving landscape of active and passive investing, the impact of regulatory changes such as the SEC's 2019 ETF rule, and the implications for retail investors and capital formation. Witnesses from investment management firms, academia, and financial reform organizations discussed the benefits and challenges of active versus passive investment strategies, the importance of investor choice, and the role of active management in price discovery and supporting IPOs. Key procurement-related topics included the growth of ETFs, regulatory reforms like the INVEST Act and the Growth Act aimed at expanding investor options and improving tax treatment, and concerns about index fund inclusion rules for companies like SpaceX. The hearing also addressed emerging issues such as AI-driven trading, tokenization, and the need for tailored disclosure forms to enhance investor understanding. Several members emphasized the importance of passing pending legislation to support capital formation and investor protections. No direct contract awards or vendor selections were discussed, but policy and regulatory decisions with potential procurement implications were highlighted.