😱 Millionaires Only: America’s Investment Secret Exposed! 😱

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In these times of grand schemes and golden promises, our esteemed leader has unfurled the red carpet for foreign wealth, with a proposed Gold Card that peddles American soil for a mere $5 million. Oh, how the coffers shall overflow with the sweet nectar of SoftBank’s $200 billion, so generously praised in the hallowed halls of Congress.

Yet, amidst the clamor for offshore riches, a silent plea goes ignored. The “accredited investor” — a title as elusive as a Russian winter’s end — bars the masses from the feast of high-yield securities. A millionaire’s club where the annual income is a laughable $200,000 minimum. Change, my friends, is as necessary as a good joke in these trying times.

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In our land of plenty, securities dance the eternal tango between public and private. The public markets, a Accessibility for all, yet a regulatory labyrinth for the issuers. Meanwhile, the private markets beckon with a siren’s call — less regulation, more exclusivity. Companies like Stripe and SpaceX opt for the veiled allure of privacy, leaving the common folk to gaze from afar.

Private markets, oh how they tease! With a flick of regulatory wrist, they say “No entry” to the 80% of American households. As businesses embrace the shadows, so too do the opportunities for the everyday Joe to build his castle fade into the mist.

In bygone eras, the public markets were the wellspring of capital for companies with grand ambitions. The public, with hearts aflutter, had access to the crème de la crème of investments. But such halcyon days are but a memory.

Hester Peirce, the SEC’s own soothsayer, laments the lost luster of the public company. The private markets, like a mischievous imp, have outpaced their global public counterparts with a devious grin.

And who is the culprit in this tale of woe? A single SEC rule, of course.

The “accredited investor” rule

Behold, 17 CFR § 230.501(a), the SEC’s own dragon, breathing fire upon the aspirations of millions. It decrees that only the chosen few may partake in the fruit of private investments. A cruel joke, perhaps?

“Knowledge is not a shield against losses,” decrees Patrick Woodall, a guardian of financial reform. “Only cold, hard cash can save you,” he quips, as the masses clutch their empty pockets.

But we, the jokers in the court of financial folly, beg to differ. This rule, this “protection,” is but a lock on the treasure chest of tomorrow, keeping the likes of OpenAI, Anthropic, and Perplexity all to itself.

The test

Last year, Sen. Tim Scott dared to challenge the status quo with the Empowering Main Street in America Act (EMSAA). A test, a simple test, to let the worthy invest. A fair proposal, one might think, but unnecessary it seems.

For the SEC, with a wave of its magic wand, could make this so. No new laws needed, just a tweak here, a nudge there. Let the people invest, let them share in the wealth of nations. But will they? Ah, that is the question.

Note: The musings herein are but the ravings of an author, and may or may not reflect the wisdom of CoinDesk, Inc. and its kin.

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2025-03-19 18:11