> In fact, what we need is to eliminate all accredited investor requirements for small investments of up to $25k. Why does someone have to be a millionaire to invest in a friend's startup?

IIRC, you don't have to be an accredited investor to invest in a friend's startup. You only need accredited investors if you're soliciting investment publicly. It's part of "Regulation D" of the SEC code: http://en.wikipedia.org/wiki/Regulation_D

This bill looks like it might have negative side effects on the startup economy, but "friends & family" isn't one of them.