The proposed rule to adjust the dollar threshold for defining a "qualifying venture capital fund" under section 3(c)(1) of the Investment Company Act of 1940 is a proactive step by the Securities and Exchange Commission (SEC) in aligning with the requirements of the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA). This adjustment for inflation reflects a recognition of the evolving economic landscape and the need for regulatory flexibility to accommodate changing market conditions. By allowing periodic adjustments every five years and establishing clear criteria for such adjustments, the SEC demonstrates its commitment to ensuring the effectiveness and relevance of regulatory measures in the investment fund industry. This proposed rule has the potential to foster greater clarity and consistency in regulatory oversight while supporting the growth and innovation of venture capital activities within the bounds of investor protection and market integrity.