In the second sail of the “crypto mom” as commissioner of SEC of the states, Hester Peirce believes that the definition of “accredited investors” need to be reconstructed into more inclusive and extended to “mom and pop” retail investors, when on Aug 26th the US SEC decided to modernize the definition of accredited investors to not just an individual’s wealth but also their education added to qualify for investing in cryptocurrency ICOs (Initial coin offerings), together with the capital market offerings.
From the official sources, the new amendment from the SECs to reclassify the definition: “considering a person’s education and not just their net worth”, was with a cumulative agenda to “simplify, harmonize, and improve the exempt” offering more opportunity to the citizen while maintaining the pertinent standard of investors protections and promoting capital formation.
The previous “accredited investor” framed and confined the investors according to their prosperity and wealth. The one whose index of wealth fit in the norms and protocols could invest in cryptocurrencies whereas, the otherwise were omitted from the list. The reclassification has pushed the degree of sophisticated wealth from being the only criteria but opened welcoming gates for all capital market offering not only cryptocurrency token sale ICOs but will also include native American and Tribal government entities.
Albeit the re-modification of the investment strategies, the SEC are not optimistic about the significant rise in the investor’s rate any sooner. To which the crypto mom; Peirce took to twitter her ideology behind the reclassification of the entire investment concept, in her tweet she quotes: “Now Americans need not seek SEC’s permission to invest, rather the accredited investor rule offers people a way to seek permission based on their education and not by their wealth”