ChainCatcher reported that Coinbase CEO Brian Armstrong posted on X that the United States should re-examine its accredited investor laws. According to Armstrong, companies are staying private for longer periods, and early-stage investment opportunities are largely available only to accredited investors, meaning wealthy individuals. Ordinary retail investors, he said, generally enter only after an IPO, when much of the upside has already been absorbed.
Two reform paths raised by Armstrong
Armstrong said the original purpose of these rules was to protect ordinary investors from fraud. In practice, however, he argued that the rules often make it harder for people who are not wealthy to build wealth. His criticism centers on the current threshold for accredited investor status, which uses wealth as the main gatekeeping standard and restricts broader adult participation in early investment opportunities.
Armstrong outlined two reform paths. The first would replace the current framework with a capability-based standard, such as allowing people to qualify as accredited investors after passing a financial knowledge test. The second would remove the rule entirely, allowing adults to assess risk for themselves while keeping disclosure requirements and fraud enforcement measures in place.