U.S. House of Representatives passes legislation changing the definition of an “accredited investor”
Next up is action by the U.S. Senate on the "Equal Opportunity for All Investors Act of 2025."
CNBC reports that more consumers could gain access to investments typically reserved for the wealthy — provided they can pass a test from regulators — under proposed bipartisan legislation.
Before its August recess, the U.S. House of Representatives approved a bill to expand the definition of who can qualify as a so-called “accredited investor” under federal securities laws. Accredited investors are permitted to invest in a wider range of assets, including pre-Initial Public Offering companies, private credit and equity, venture capital, and hedge funds.
The legislation, known as the “Equal Opportunity for All Investors Act of 2025,” would direct the Securities and Exchange Commission to create a test that individuals can take to qualify as an accredited investor, without regard to their wealth or income.
Currently, to qualify as accredited, investors generally need an annual earned income of $200,000 for individuals, or $300,000 for married couples. Individuals or couples can also qualify with a total net worth of at least $1 million, not including the value of their primary residence. (Those thresholds are not pegged to inflation and haven’t changed in decades; as a result, more households have become accredited over the years as wealth and incomes grow.)
The bill must be passed in the Senate and signed into law by President Trump.
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