The US Securities and Exchange Commission chairman said he wants to open up startups’ private stock sales to more than just affluent investors in the wake of a US Treasury Department report and pressure from lawmakers.
Chairman Jay Clayton called for a change in the “accredited investor” definition that restricts investments in off-exchange sales by hedge funds, startups and private equity funds out of concern about potential fraud against Main Street.
“I would like to see us modernize the accredited investor definition to make it easier for more people to participate in funding small businesses,” Clayton told the US House Committee on Financial Services last week.
SEC’s Clayton calls for opening private stock sales to more than affluent investors
26 June 2018 8:58am