Coinbase CEO Brian Armstrong has renewed calls for changes to U.S. accredited investor rules, arguing that the current system gives wealthy investors access to opportunities that most people cannot reach.
In a post on X, Armstrong said many companies now stay private for longer periods, allowing accredited investors to invest early while retail investors often have to wait until after an initial public offering (IPO). By that stage, much of the growth may have already occurred. He said the rules were originally designed to protect investors from fraud, but argued that their real-world impact has become increasingly questionable.
I think it’s time to revisit the accredited investor laws in the US.
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.
These rules…
— Brian Armstrong (@brian_armstrong) June 16, 2026
Why does wealth determine who can invest?
Under current U.S. rules, investors generally need to meet certain income or net worth requirements to qualify as accredited investors and gain access to many private investment opportunities. Armstrong argued that this system ties investment access to wealth rather than ability or knowledge.
According to him, the result is that people who are already wealthy can participate in early-stage investments, while ordinary investors are often excluded from the same opportunities.
He described the outcome as a system that can make it easier for wealthy individuals to build more wealth.
Could a financial literacy test replace income requirements?
One proposal put forward by Armstrong is replacing wealth-based requirements with a financial literacy test. Under this approach, investors would qualify based on their understanding of financial risks and investment concepts rather than the size of their bank account.
Armstrong said a competency-based system would be fairer because it would focus on knowledge rather than income or net worth.
What happens when gains move before IPOs?
Retail investors often only gain access after companies go public, when much of the early growth has already taken place. By that stage, private investors have usually captured the biggest upside.
Armstrong says this creates an uneven system where access depends more on wealth than timing or understanding. He argues that the rules may no longer match how modern companies raise capital and grow.
He suggests either removing accredited investor limits or replacing them with a knowledge-based test. In his view, current rules reflect an older market, while private markets now play a much bigger role in early-stage growth.
Meanwhile, the Coinbase chief executive had previously expressed optimism about Trump’s re-election, citing the president-elect’s openness to digital assets and financial innovation as a potential catalyst for a more favourable federal stance toward cryptocurrency and blockchain technology.
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