SEC Proposes Amendments to Broaden Retail Access to Alts

The Securities and Exchange Commission voted Wednesday to propose rule amendments to grant retail investors increased access to private-market investments.

The SEC’s announcement is a first step in developing a framework in which individual investors could qualify as accredited investors through expanded certifications, rather than just meeting income and net worth requirements.

Currently, individuals can only invest in private markets if they are accredited—maintaining a net worth of more than $1 million, and an annual income of more than $200,000.

In a separate statement about the proposal, SEC Chairman Paul Atkins said the commission was “focused on expanding opportunities for investors’ post-tax, pre-retirement dollars,” and said the effort would “complement” President Donald Trump’s 2025 executive order which encouraged private market investments in 401(k) plans.

“Investor demand for private market investment opportunities is growing, and one of my priorities for the commission is to explore ways to facilitate the ability of individual investors to participate in private markets, while at the same time protecting those investors from bad actors and fraud,” Atkins said in his statement.

The commission is seeking public comments on the proposed amendments, as well as on the introduction of a potential accredited investor exam to be developed by the Financial Industry Regulatory Authority that would provide a “non-financial pathway” for investors to show they could evaluate potential investments.

The SEC is also considering if holding certain professional certifications and licenses would qualify investors as accredited, including Certified Financial Planner , Chartered Financial Analyst, Certified Public Accountant, FINRA Investment Banking Representative (Series 79) and FINRA Research Analyst (Series 86 and 87).

Public comments on the amendments will be accepted for 60 days after the amendments are published in the Federal Register.

In 2019, the SEC, under then-Chairman Jay Clayman, began to explore revising and loosening the accredited investor framework.

Under Chair Gary Gensler, during the Biden administration, the SEC focused on private fund oversight and investor protection, rather than expanded retail investor access to alternative investments. The SEC also released a report in 2023 outlining its decision not to count an individual’s retirement assets when determining if they met the wealth threshold for investing.

In February 2025, then-Acting Chair Mark Uyeda directed SEC staff to consider changes that could broaden retail access to alternative investments.

Wednesday’s announcement is the SEC’s strongest signal that it could open entirely new pathways for retail access to alternative investments, significantly enlarging the pool of investors eligible to access asset classes including private equity, venture capital, private credit, hedge funds and other private markets investments.