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It’s Time to Reform the Accredited Investor Rule

Published

2 месяца ago

19 марта, 2025

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In recent weeks, President Trump has taken steps to draw investment to the United States. His proposed Gold Card would allow foreign investors to purchase legal status in the United States for $5 million. In his Joint Address to Congress, he lauded a $200 billion direct investment from Japan’s SoftBank.

While there’s nothing wrong with soliciting offshore investment, the government is missing a key source of investment at home. The accredited investor rule — which says that individuals must have a net worth of more than $1 million, or annual income exceeding $200,000 — shuts too many Americans out of our most lucrative securities markets. It’s time to change that.

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In the U.S., securities broadly fall into two categories: public and private. Public securities trade freely on national exchanges and are open to all investors, but they are extremely onerous to issue. Companies are required to navigate extensive regulatory and compliance requirements to “go public.” Their alternative is to stay private, and many companies like Stripe and SpaceX are choosing to do just that.

Private markets, however, come with a catch. In exchange for easing the burden of regulation, they restrict access to accredited investors. This means that 80% of American households that do not qualify are effectively shut out. As more businesses choose to stay private, more everyday Americans are prevented from building wealth alongside them.

In the old days, public markets were the deepest and most reliable sources of capital for large, high-growth companies. This was great for the public, because it meant they had access to the best investments. Times have changed, though.

According to SEC Commissioner Hester Peirce, “The once aspirational goal of becoming a public company seems to have lost its luster.” In recent years, private markets have grown at roughly double the rate of global public equity markets.

And a single SEC rule is to blame.

The accredited investor rule

The accredited investor rule, 17 CFR § 230.501(a), is an SEC regulation that restricts access to private investments. It sets criteria investors must meet to participate in offerings like Regulation D, the primary exemption private companies use to raise capital. In effect, the rule blocks millions of Americans from investing in the most promising companies.

Advocates defend this rule openly. “Knowledge cannot protect people from potential losses… Only financial resources can,” Patrick Woodall, director of policy at Americans for Financial Reform, told The Wall Street Journal last year.

We disagree. This paternalistic view assumes the public must be “protected” from itself. But the accredited investor rule doesn’t protect the public. It locks them out from investing in companies shaping the future like OpenAI, Anthropic and Perplexity.

The test

Last year, Sen. Tim Scott sponsored the Empowering Main Street in America Act (EMSAA), proposing, among other things, a test-in accredited investor definition.

A test-in policy has clear advantages. First, it’s fair. Any American who passes can invest. Second, broader access to private markets lets more Americans share in the country’s economic success. If we’re building here, everyone should be able to buy in. Third, expanding private markets makes them more useful.

But Sen. Scott’s bill is unnecessary — a test-in accredited investor rule doesn’t require new legislation. The SEC already has the power to implement it through Sec. 2(a)(15) of the Securities Act of 1933. Because of this, an amendment to the rule on these grounds is unlikely to encounter significant legal resistance. By amending the accredited investor rule, the SEC can reshape private markets through rulemaking alone. It should start tomorrow.

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Solana (SOL) Surges 6% on Bullish Reversal and DeFi Activity Toward $180

Published

2 часа ago

20 мая, 2025

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The cryptocurrency market continues to respond to broader economic factors as Solana demonstrates resilience amid global trade uncertainties. SOL’s price action formed a clear uptrend with higher lows and higher highs, breaking through key resistance levels with institutional-grade volume suggesting accumulation despite a brief 1.35% correction in recent hours. Meanwhile, analysts point to the $166.82 level as a crucial short-term pivot, with potential for significant upward movement if SOL can maintain momentum above $177 resistance.

Technical Analysis Highlights

SOL climbed from a low of $159.69 to a high of $173.03, representing a significant range of $13.34 (8.35%).
Price action formed a clear uptrend with higher lows and higher highs, breaking through key resistance at $166.87.
Above-average volume was observed around the $167-$170 zone, indicating strong buyer interest.
Notable support established at $160.34, where buyers stepped in with conviction during early hours.
Final four hours showed accelerated momentum with volume spikes exceeding the 24-hour average, suggesting institutional accumulation.
A brief downward correction occurred in the last 60 minutes, falling from $172.19 to $169.87 (1.35% decline).
The $170.00 psychological level briefly acted as support before failing.
Final 30 minutes showed decreasing volatility and volume, potentially indicating exhaustion of selling pressure.

External References

«Solana Price Holds $166 Support After Rejection From $183 – What Comes Next?«, NewsBTC, published May 19, 2025.
«Here’s What Can Trigger a Solana (SOL) Bull Run«, CryptoPotato, published May 19, 2025.
«Solana Price Prediction: Rising Network Adoption May Push SOL Price Beyond $200 By May«, CoinPedia, published May 19, 2025.

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Circle Has Explored Potential $5B Sale to Coinbase or Ripple Instead of IPO: Report

Published

2 часа ago

20 мая, 2025

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Stablecoin issuer Circle, which filed for an initial public offering (IPO) last month, has explored the alternative of a sale to crypto exchange Coinbase (COIN) or payments company Ripple, according to a Monday report by Fortune.

The New York-based issuer of USDC, the second-largest stablecoin, took part in informal talks over a potential sale from which it was seeking at least $5 billion, Fortune reported, citing people who asked not to be identified.

This figure would be line with the company’s valuation by investment banks JPMorgan and Citi, which Circle had hired to help with the IPO.

Coinbase holds a minority share in Circle, and the two companies share revenue from USDC’s reserve interest income. Ripple recently debuted its own stablecoin, RLUSD. An offer by Ripple to buy Circle was rejected, Bloomberg reported last month.

Circle said in an emailed statement that it «is not for sale,» and remains committed to going public, Fortune said. The company aborted a previous attempt at going public via a special purpose acquisition company (SPAC) merger in 2021.

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RWA Platform TokenFi Is Tokenizing the Floki Minibot

Published

2 часа ago

20 мая, 2025

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TokenFi, a sister project to Floki that focuses on real-world asset (RWA) tokenization, is set to tokenize the Floki Minibot M1 — an AI-powered robot built by Rice Robotics — marking what the team says is the first tokenization of a consumer AI robot.

The move coincides with the launch of TokenFi’s RWA tokenization module on May 23. A presale for the Minibot M1’s token will go live the same day, initially for users on a whitelist compiled by Rice AI and select Floki ecosystem participants.

The presale ties into broader plans to launch Rice AI’s RICE token and conduct an airdrop for Floki (FLOKI) and TokenFi (TOKEN) holders, according to the announcement. Further details are expected post-sale, the team told CoinDesk.

The Floki Minibot is a branded version of Rice Robotics’ compact delivery and companion robot, which operates autonomously and is built on the RICE AI system. Rice Robotics counts Nvidia, Softbank, Mitsui Fudosan and 7-Eleven Japan among its partners and clients.

«This is the first time in history that an AI robot will be tokenized,” TokenFi said in a statement to CoinDesk. “It’s a phenomenal moment for TokenFi, the RWA industry, and the AI robotics space.”

TokenFi aims to be a leading RWA infrastructure provider, allowing companies to tokenize real-world items — from assets to equity and now robotics — using blockchain rails.

Floki developers said earlier this year that they believe Rice Robotics is “well-positioned for growth” in the AI robotics sector, citing industry projections that peg the market at over $100 billion by 2030.

TOKEN has gained 19% in the past 24 hours, data from CoinGecko show, alongside a jump in major tokens. The CoinDesk 20 Index, a measure of the broader crypto market, has added 3%.