- A blog post from the SEC states that they are aiming to list a new set of qualifications so people can become an accredited investor.
- What is an accredited investor?
- SEC chairman Jay Clayton commented on the matter
Scrolling through Twitter this morning I saw a tweet from Anthony Pompliano citing a newly published blog post from the US Securities and Exchange Commission (SEC) stating that the body is aiming to list a new set of qualifications so people can become an accredited investor.
BREAKING: SEC Proposes to Update Accredited Investor Definition to Increase Access to Investments.— Pomp 🌪 (@APompliano) 18 December 2019
This is a step in the right direction.
We must stop discriminating against 80%+ of Americans based on wealth.https://t.co/UukByxSNEh
According to the press release issued earlier this week, the SEC intends to add a list of new qualifications to become an accredited investor. For those who don’t know, accredited investors are individuals that have more than a million US Dollars in net worth or an organisation with a net worth of more than $5 million in assets. On top of this, it includes banks and institutions that meet the specific legal definition.
Speaking on the matter, the SEC chairman Jay Clayton said:
“The current test for individual accredited investor status takes a binary approach to who does and does not qualify based only a person’s income or net worth. Modernization of this approach is long overdue. The proposal would add additional means for individuals to qualify to participate in our private capital markets based on established, clear measures of financial sophistication. I also am pleased that the proposal specifically recognizes that certain organizations, such as tribal governments, should not be restricted from participating in our private capital markets.”
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!