Key members of the crypto community have responded to the recent change in the definition of the term “accredited investor” by the United States Stock Exchanges and Securities Commission. Although many gave a positive answer, some say the new rules don’t go far enough.
On August 26, the SEC announced that the definition of an accredited investor would now be based on “professional certifications, titles, or diplomas or other credentials issued by an accredited educational institution.” According to the old definition, accredited investors must have assets of $ 1 million or a stable income of at least $ 200,000 per year.
This SEC rule has been under scrutiny in the crypto community for some time The expansion of the category opens up the possibility for many people to invest in security token offeringsamong other things in the ecosystem of digital assets.
Many celebrities quickly praised the decision, including Twin Co-Founder Tyler Winklevoss.
Kudos to the SEC for realizing that a penniless GenZ’er can be as sophisticated an investor as a Wall Street boomer. Wealth does not mean investing ingenuity. Just look at how the “experts” missed Wall Street #Bitcoin. https://t.co/tDpeyfjEQ8
– Tyler Winklevoss (@tylerwinklevoss) August 26, 2020
The founder of Zcoin, Poramin Insom said the change would have a positive impact on future security token offerings by potentially offering greater inclusion. “This allows additional investors to immerse themselves in this important market and get smaller projects off the ground,” he said.
Robin O’Connell, Chief Revenue Officer of the trading platform said:
It’s nice to see regulators adapt. It offers more opportunities and access to investments that were previously only offered to a privileged few.
Not all were that impressed and some asked the agency how many investors would meet the new definition.including those “based on established and clear measures of financial sophistication”. Financial sophistication usually refers to investors with high net worth and extensive experience in the markets, but the SEC’s use of the term is not yet clear.
“”You are finally integrating knowledge and sophistication, not wealth“, said Bitcoin (BTC) educator Anthony ‘Pomp’ Pompliano. “”This is a step in the right directionBut we need even better access and more comprehensive rules. “
Alex Mashinsky, CEO of Celsius Network, said:
“99% of the population do not have access to the best innovations this country has to offer. So the question now is whether regulators need accreditation for retail users to do what they are already doing, or whether the SEC will let the action go on. “