Coinbase CEO Brian Armstrong has endorsed a U.S. Securities and Exchange Commission (SEC) proposal to broaden retail investors' access to private markets, arguing that ordinary Americans have long been shut out of opportunities reserved for wealthier individuals.

In an October 11 post on X, Armstrong said everyday investors have missed out as companies increasingly stay private for longer — a trend that gives early shareholders years of exposure to private-company growth before the public can participate through listed markets.

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. And over the last few years, companies have been… pic.twitter.com/uP6BJlxEDS
— Brian Armstrong (@brian_armstrong) October 11, 2026

Post on X

Armstrong also warned that late entrants could become exit liquidity for earlier shareholders — a situation in which newcomers buy into an opportunity while existing holders sell their positions, potentially leaving them exposed to unfavorable valuations.

SEC Weighs Credentials and Exams as New Routes to Accredited Investor Status

The proposal follows the regulator's September 30 announcement of potential changes affecting private-market investments and regulated funds, measures designed to broaden participation while maintaining investor protections.

Under the proposed changes, registered investment advisers could receive performance-based compensation from additional client categories, including certain regulated funds. The SEC also plans to require further disclosures about that compensation and to modernize the rules governing interval funds. Separately, the agency is seeking public feedback, detailed in a Federal Register notice, on alternative ways to qualify as an accredited investor.

Options under consideration include professional credentials, examinations and certain financial industry licenses. The qualifications being weighed include the Chartered Financial Analyst (CFA) charter, the Certified Public Accountant (CPA) license and the Certified Financial Planner (CFP) certification, along with certain Financial Industry Regulatory Authority (FINRA) licenses and an accredited investor examination developed by FINRA.

Such alternatives could give individuals another way to demonstrate financial knowledge without meeting the existing income or wealth requirements. Under current rules, individuals generally qualify through annual income exceeding $200,000 in each of the previous two years, joint income exceeding $300,000, or a net worth above $1 million excluding a primary residence. Those financial thresholds — rather than any test of financial knowledge — have determined who may buy into private offerings. That is why the qualification standard itself sits at the center of the debate: the credential and exam routes would make demonstrated expertise a possible alternative path, the merit-based access Armstrong described.

The proposals remain under consideration and have not been adopted as final rules.

Longer Private Lifecycles Narrow the Window for Public Investors

The debate reflects a changing fundraising environment in which companies can secure successive private funding rounds without listing shares publicly. That allows founders and early shareholders to retain control while delaying public disclosure requirements and the costs of going public.

For retail investors, this can mean waiting until an initial public offering (IPO) to access publicly traded shares. By then, early investors may already have participated in private funding rounds and transactions unavailable to the wider market.

Armstrong's exit-liquidity warning centers on this timing gap: investors entering later could face elevated valuations while earlier shareholders sell, although outcomes depend on the individual company, investment terms and pricing.

Broader access through regulated funds would not eliminate investment risks. Private-market assets can involve limited liquidity, uncertain valuations, fees and potential losses, and interval funds typically offer repurchases at scheduled intervals rather than unrestricted daily withdrawals.

The regulatory process will determine which proposed changes proceed and what safeguards accompany them. The public feedback process detailed in the Federal Register notice is the next procedural step to watch, followed by the SEC's decisions on whether to adopt, amend or drop each element. Until then, existing accredited investor thresholds and fund rules remain in force, and the SEC's plan signals a possible change in access to private markets — not an immediate opening of every private investment to retail investors.

Source: Blockonomi