US Securities and Exchange Commission Chairman Paul Atkins indicated that the regulatory agency would work with the administration of US President Donald Trump to give retail investors equal opportunities to invest in private equity.
Etkins cites recent Trump Executive Order 401K retirement accounts to allow crypto and alternative property-a catalyst for catalysts for individuals and their employers funded by financed retirement plans. He told Fox Business on Saturday:
“This is not really very good for a situation where large endowers and pension funds such as state pension funds can be diversified in public and private markets, while 401ks cannot.
However, Atkins urged the warning and put a “proper railing” around alternative investments. He said, “We can not just open gates and investors have to be hurry, where someone has to be careful.”
The agency has recently preferred regulating cryptocurrency to make the US a global leader in Digital Assets, Atkins. Said,
Broadcasting access to private equity will allow retail investors to invest in initial stage crypto projects and private tokens, which are usually reserved for recognized or institutional investors.
The recognized investor rushed to cointelegraph sec to describe the possible overhaul of the rules, but the agency refused to comment.
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SEC overhells recognized investor rules in 2020 to emphasize financial knowledge and skills on net worth in 2020, which could qualify as a recognized investor in the US.
Despite this, the current rules are prohibitive and according to Christopher Perkins, Chairman of Investment Fund Coinfund, some investment products are locking retail investors.
According to SEC, recognition rules to protect investors from taking too much financial risks exist as consumer protection.
These risks are complicated in private businesses, which do not have to follow the same disclosure requirements and may require more financial skills to fully understand their public counterparts.
Private investments are also uncontrolled, and can spread through overlaying or malinavestment through a fingering financial system that spreads to other asset classes and markets during a financial crisis.
magazine: SEC’s U-turn on Crypto leaves important questions
