Retail investors could gain exposure to private equity and crypto projects under Trump administration policy shift
US Securities and Exchange Commission (SEC) Chair Paul Atkins said the agency is working with the Trump administration to expand retail investor access to private equity markets, traditionally limited to accredited investors.
Atkins pointed to President Trump’s recent executive order allowing crypto and alternative assets in 401(k) retirement plans as a major catalyst. Speaking on Fox Business, he argued that retirement savers should not be locked out of opportunities available to large endowments and pension funds.
“It’s not really great to have a situation where state pension funds can be diversified in public and private markets, while 401(k)s cannot,” Atkins said. “That’s one of the goals of this executive order: to direct the Department of Labor and the SEC to work together to help make that a reality.”
Atkins cautioned that any expansion must include “proper guardrails” to prevent retail investors from overexposure. He emphasized that alternative investments like private equity, crypto startups, and private token sales carry greater risks than public markets.
The SEC has a history of limiting such opportunities through its accredited investor framework, meant to protect less experienced investors. While the definition was broadened in 2020 to include individuals with financial expertise, critics say the requirements remain too restrictive and block access to high-growth opportunities.
Implications for crypto and alternative assets
If implemented, the change could allow retail investors to participate in early-stage crypto projects and private token sales, areas typically reserved for institutions. Atkins has previously said that making the US the global leader in digital assets is a regulatory priority.
Industry voices welcomed the remarks. Christopher Perkins, president of CoinFund, argued that the current rules unfairly exclude retail investors:
“These regulations lock out regular investors from some of the most promising opportunities,” Perkins said.
Still, risks loom. Private investments are illiquid, lack the same disclosure standards as public companies, and could spread contagion through the financial system in a crisis if widely adopted by retail.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.