The U.S. Securities and Exchange Commission (SEC) has amended the definition of accredited investors, such as to include those with proven financial knowledge. The broader definition will enable more people to invest in private offerings of cryptocurrency investments.
SEC’s New Accredited Investor Definition
The SEC announced Wednesday that it has adopted amendments to the definition of “accredited investor.” The new, broader definition will open up many cryptocurrency investments previously available only to high-net-worth individuals and institutional investors to more buyers. Grayscale Investments’ cryptocurrency products, for example, are available to accredited investors.
SEC Chairman Jay Clayton commented:
For the first time, individuals will be permitted to participate in our private capital markets not only based on their income or net worth, but also based on established, clear measures of financial sophistication.
The SEC has also “expanded and updated the list of entities, including tribal governments and other…