New SEC Rules Will Make ICO More Accessible
The US Securities and Exchange Commission has expanded the definition of “accredited investor”. It will allow more investors to participate in cryptocurrency ICOs and other offerings. In accordance with US law, only accredited investors can buy cryptocurrency through token sales and ICOs. Meanwhile, the general public can trade any cryptocurrency on the exchange only after the ICO is completed. In practice, this means that only wealthy investors have access to early investment opportunities.
The new SEC rules mean that individuals can become accredited investors by proving their "knowledge, experience and supporting certifications." According to SEC Commissioner Hester PEIRCE, the regulator has historically limited the definition of an accredited investor to wealthy investors. It is believed that wealthy investors are able to withstand losses.
It should be noted that the new SEC rules apply not only to cryptocurrency markets and ICOs. They also apply to all private investments such as IPOs. However, this news is of particular importance to the cryptocurrency community, which believes that investments should be open to everyone and that the status of an accredited investor should be canceled.
Image courtesy of Investment News
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