Coinbase CEO Backs SEC Proposals to Broaden Retail Access to Private Markets

Coinbase CEO Brian Armstrong backed the Securities and Exchange Commission’s separate proposals to broaden retail access to private-market investments through new qualification pathways and professionally managed funds.

The SEC issued separate proposals and notices Sept. 30 covering regulated funds, interval funds, performance-based compensation disclosures and multiple share classes for closed-end funds and business development companies. Separate notices address possible alternatives to the existing income and net-worth requirements for accredited-investor status.

“It’s great to see the SEC proposing merit-based private market access in the US. This will be a huge step forward. For too long, only the richest people have had access to the private markets. Retail has been missing out,” Armstrong said Oct. 11.

The credential-based pathway under consideration could recognize a U.S. certified public accountant license, Chartered Financial Analyst charter, Certified Financial Planner certification, FINRA Series 79 license, and FINRA Series 86 and Series 87 licenses. FINRA is the Financial Industry Regulatory Authority, which oversees broker-dealers and securities professionals in the United States.

A separate notice considers an accredited-investor exam developed by FINRA. The notice says the fee is expected to be similar to the Securities Industry Essentials exam, which currently costs $100. The proposed credential would need to be renewed by retaking the exam every 10 years.

The proposals would not immediately remove the existing financial tests. Individuals generally qualify as accredited investors with annual income above $200,000 in each of the previous two years, or joint income above $300,000, while reasonably expecting to reach the same level in the current year. Another route requires net worth above $1 million, excluding a primary residence.

The possible changes would focus on access through professionally managed funds rather than making every private-company investment directly available to individual investors. Private-market products can have limited liquidity, infrequent valuations, fees and the risk of investment losses. Interval funds generally offer repurchases only at scheduled intervals rather than unrestricted daily withdrawals.

“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,” SEC Chairman Paul S. Atkins said Sept. 30.

The latest proposals build on the SEC’s earlier consideration of fund-based private-market access, including proposals to expand retail access through regulated funds.

The proposals are not final rules. Public comments on the exam and credential notices are due Dec. 4, 2026.