Image credit: Shutterstock
- Coinbase CEO Brian Armstrong backed a U.S. Securities and Exchange Commission effort to broaden access to private-market investments beyond traditional wealth thresholds.
- The SEC is considering professional credentials and a FINRA-developed accredited-investor exam as additional ways for individuals to qualify.
- The proposed measures remain subject to public comment and have not yet taken effect.
Coinbase CEO Brian Armstrong has backed a U.S. Securities and Exchange Commission effort to broaden access to private-market investments beyond traditional wealth thresholds. The SEC is considering professional credentials and passage of a FINRA-developed accredited-investor exam as additional ways for individuals to qualify.
The SEC announced the accredited-investor reviews alongside a broader package of proposals aimed at expanding retail access to private investments through regulated fund structures. The measures remain subject to public comment and have not taken effect.
Armstrong Calls Proposal a “Huge Step Forward”
Armstrong said the current system has excluded many individual investors from private companies during earlier stages of growth. He supports qualification based more heavily on financial knowledge rather than relying only on income or net worth.
“It’s great to see the SEC proposing merit-based private market access in the US. This will be a huge step forward.”
His comments do not suggest private investments would become risk-free. Such assets can still involve limited liquidity, valuation uncertainty and losses.
SEC Considers New Investor Qualifications
Individuals currently can qualify as accredited investors through criteria including net worth above $1 million, excluding a primary residence, or income above $200,000 individually or $300,000 jointly. Certain securities licenses can also qualify an investor.
The SEC is considering additional credentials including CPA licenses, CFA charters, CFP certifications and certain FINRA licenses. It is separately seeking comment on a possible FINRA-developed accredited-investor exam, which would still require further development before it could become a qualification route.
Other Private-Market Rules Could Change
The SEC also proposed changes covering performance-based compensation for registered investment advisers and access to private-market strategies through certain closed-end and interval funds. Those measures would broaden regulated pathways rather than make every private company investment directly available to all retail investors.
Proposal Still Faces Public Review
The SEC is accepting comments before deciding whether to adopt the changes. Comments on the proposed FINRA exam pathway are due Dec. 4, 2026, while related rulemaking follows separate deadlines.
Armstrong’s support reflects backing for a potential expansion of private-market access. For now, investor eligibility rules remain unchanged.
