The US Treasury Department proposed a bill earlier this month that would regulate venture capital, private equity firms and hedge funds that had more than $30 million in assets.
Registration with thewould mean more detailed reporting. Firms would have to periodically disclose their assets, leverage, credit risk, trading and investment practices and any financial information that could prove useful to the Federal Reserve. At the same time, the government would reserve the right to check in on firms at random times to make sure everything is in order and that records are being kept.
Large firms are already subject to similar regualtions, but the proposed bill would mean profound changes for small and medium-szied capital firms.