SEC Chair Paul Atkins stated that the agency will work with the Trump administration to provide ordinary investors with the opportunity to invest in private equity.

Atkins referenced a recent executive order by Trump that allows the addition of cryptocurrencies and alternative assets in 401K retirement accounts, seeing it as a catalyst for this effort. He stated during an interview with Fox Business on Saturday:

'There should not be a situation where only large endowment funds and state pension funds can diversify investments in public and private markets while 401Ks cannot. This is one of the goals of this executive order: to guide the Department of Labor and the SEC to achieve this objective.'

However, Atkins emphasized the need to approach alternative investments with caution and to set 'appropriate guardrails.' 'We cannot allow investors to recklessly enter areas that require caution,' he stated.

The agency has consistently prioritized the regulation of cryptocurrencies with the goal of making the U.S. a global leader in digital assets.

Expanding access to private equity will allow retail investors to participate in early-stage crypto projects and private token offerings that are typically restricted to accredited or institutional investors.

Cointelegraph sought details from the SEC regarding possible reforms to accredited investor rules, but the agency declined to comment.

Crypto investors welcome the changes, but risks remain.

In 2020, the SEC reformed the accredited investor regulations, emphasizing financial knowledge and skills over net worth, thereby broadening the scope of qualified U.S. accredited investors.

However, according to Christopher Perkins, president of investment fund CoinFund, current regulations remain restrictive, excluding retail investors from certain investment products.