What Do Accredited Investor Laws and Voting Restrictions Have in Common? More Than You Think…

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Dealing with securities is a delicate dance for both investors and the companies they invest in. For investors, many are sitting on the sidelines while those who qualify as accredited investors are playing in the lucrative field of secondary markets. For companies, especially those experimenting with digital assets, they have to make sure that they follow the SEC’s guidelines such as registering as a security or qualifying as a utility token or face penalties. Securities laws such as the Securities Act of 1933 and Securities Exchange of 1934 were written in the wake of the Great Depression, and since then the world has witnessed several boom and bust cycles that have run parallel to the exponential progress of technology. It’s time to update these laws for the 21st century because some statutes, such as accredited investor requirements, are stifling innovation, proliferating income inequality, and moving innovation off American shores.