SEC considers wider access for retail investors
US Securities and Exchange Commission Chair Paul Atkins said the regulator plans to work with President Donald Trump’s administration to allow retail investors access to private equity opportunities typically reserved for accredited investors.
Atkins pointed to Trump’s recent executive order enabling crypto and alternative assets in 401K retirement accounts as the catalyst for the shift.
“It’s not really great to have a situation where large endowments and pension funds like state pension funds can be diversified in the public and private markets, while the 401ks cannot,” Atkins told Fox Business.
He added that proper safeguards must be in place, warning, “We can’t just fling the gates open and have investors rush in where one has to be careful.”
Implications for crypto and alternative assets
The SEC has prioritized digital asset regulation, with Atkins saying the US should take the lead in crypto markets. Broadening private equity access could allow retail investors to participate in early-stage crypto projects and private token sales typically limited to accredited or institutional investors.
Industry reaction and potential risks
Crypto investors and funds welcomed the move, though experts noted risks remain. CoinFund president Christopher Perkins said existing accreditation rules lock out many retail investors from high-growth opportunities.
The SEC last revised accredited investor definitions in 2020, shifting emphasis from net worth to financial knowledge. Still, the bar remains high, limiting retail participation.
The agency maintains that the rules are designed to protect investors from exposure to excessive risk in opaque private markets. Illiquidity, limited disclosures, and potential contagion in downturns are cited as ongoing concerns.
