Coinbase CEO Brian Armstrong called on the U.S. government to overhaul its accredited-investor framework on Monday, arguing that wealth-based restrictions on private investment lock ordinary Americans out of opportunities available only to the already wealthy.
Armstrong's call came shortly after SpaceX's landmark $75 billion Nasdaq debut on June 12. The rocket company had remained private for 24 years, concentrating early gains among accredited investors. Retail buyers could enter only after the public listing, when pre-IPO appreciation had already accrued. Armstrong posted a thread on X outlining his critique and two reform paths.
"I think it's time to revisit the accredited investor laws in the US," Armstrong wrote. "Companies are staying private longer, where only accredited investors (aka rich people!) can invest. Retail investors can only come in after IPO, when much of the upside has already been captured."
Under SEC rules set out in 17 CFR 230.501, individuals must hold net worth above $1 million, excluding their primary residence, or report annual income above $200,000, to qualify as accredited investors. Joint filers must clear $300,000. The thresholds have not been adjusted for inflation since the early 1980s. The gate bars retail participants from private placements, venture capital rounds, and pre-IPO deals where much of the long-term appreciation in high-growth companies accumulates before public listing.
