Armstrong Tips His Hat to SEC's "Know-It-All Investor" Rule 📌

Coinbase CEO Brian Armstrong publicly endorsed the U.S. Securities and Exchange Commission's proposal to overhaul accredited investor rules, calling the move "a huge step forward" in an October 11 post on X. He argued that the existing wealth-only criteria have long excluded everyday investors from private equity, startup funding rounds, and early-stage deals, while companies continue to remain private for longer periods.

Under current Regulation D guidelines, individuals must meet a $200,000 annual income threshold or maintain $1 million in net worth excluding their primary residence to qualify as accredited investors. The SEC's new proposal would replace the income-and-assets test with a knowledge-based approach, allowing qualification through a FINRA exam, a CPA license, a CFA charter, or a CFP certification.

SEC Commissioner Hester Peirce expressed support for the framework while raising concerns about placing the design of that exam solely with FINRA. The Commission's notices remain open for public comment for approximately 60 days, during which market participants and industry stakeholders are expected to weigh in on the proposed standards and their implementation.

Armstrong has previously characterized the existing wealth-based gatekeeping as regressive, a view echoed by retail-advocacy groups that argue knowledge-qualified participants deserve access to the same private-market opportunities historically reserved for high-net-worth individuals and institutional investors. The SEC has not yet indicated a final timeline for adopting the revised criteria.