Accredited Investor Definition Review Act

The Accredited Investor Definition Review Act would expand the criteria used to determine who is eligible to invest in private, unregistered securities, such as startups and private equity funds. Currently, "accredited investor" status is largely based on high income or net worth; this bill grants the Securities and Exchange Commission (SEC) the authority to include individuals who possess specific professional certifications, designations, or credentials.

For the average citizen, this change could provide a pathway to participate in private investment opportunities based on financial knowledge and expertise rather than just personal wealth. The bill also requires the SEC to review these qualifying credentials every five years to ensure the definitions remain current and continue to protect investors.