The latest cryptocurrency news show that plenty of prominent crypto players have responded positively to the SEC decision on ‘accredited investors’ while others said that the move falls short. As we can see in the news, crypto leaders are not sure about it, but some of them responded to the amending of the definition of an “accredited investor” by SEC. While many of the players gave positive feedback, some say that the new rules don’t go far enough.
For those of you who don’t know or did not follow the regulation news, on August 26 the SEC announced that the definition of accredited investors would now be based on “professional certifications, designations or credentials, or other credentials issued by an accredited educational institution.” Under the old definition, accredited investors needed to hold either $1 million as net worth or have a stable income of at least $200,000 per year.
The rule by the SEC has been under scrutiny in the community for some time. Expanding this category opens the doors to many more people investing in security token offerings. This is why crypto leaders are not sure what kind of opportunities this definition will present. One of them was the Gemini co-founder, Tyler Winklevoss, who tweeted:
Kudos to the SEC for acknowledging that a penniless GenZ’er can be just as sophisticated an investor as a Wall Street Boomer. Wealth does not equal investment acumen, just look at how the Wall Street “experts” missed the #Bitcoin rocket ship. 🤡 https://t.co/tDpeyfjEQ8
— Tyler Winklevoss (@tylerwinklevoss) August 26, 2020
Another one was the Zcoin founder Poramin Isnom, who said that this change would positively affect future security token offerings by offering greater inclusion. As he said:
“It will allow additional investors to pour into this essential market, helping smaller projects get off the ground.”
The chief revenue officer at the trading platform Uphold, Robin O’Connell, also voiced his opinion and said:
“It’s great to see that the regulators are adapting. It allows for increased opportunity and access to investments that were previously just offered to the privileged few.”
Still, the crypto leaders are not sure and not every one of them was impressed. Some even called for the agency to clarify how many investors will meet the new definition, which includes the ones “based on established and clear measures of financial sophistication.”
“They are finally incorporating knowledge and sophistication, rather than net worth,” said Bitcoin (BTC) educator Anthony ‘Pomp’ Pompliano. “This is a step in the right direction but we need even greater access and broader rules.”
BREAKING: The SEC has released expanded rules on who qualifies as an accredited investor.
They are finally incorporating knowledge & sophistication, rather than net worth.
This is step in right direction but we need even greater access & broader rules.https://t.co/wKGbPaIovg
— Pomp 🌪 (@APompliano) August 26, 2020
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