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DeFi is up, but how will it respond to impending regulation?
The crypto market has been in a bit of a bear run for the past few weeks/months, but DeFi tokens are rebounding. Some of the standouts are $CRV.X $LDO.X $LINK.X $UNI.X
But what will happen once crypto exchanges get regulated?
Crypto definitely needs some regulation to protect investors, but if they start demanding that people be accredited investors in order to invest in crypto, that can exclude a large swath of people from sharing in this wealth creation vehicle. According to the SEC, this is what you need to qualify as an accredited investor:
- Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year
and/or
- Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)
- Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company)
- Any “family client” of a “family office” that qualifies as an accredited investor
- For investments in a private fund, “knowledgeable employees” of the fund
It'll be interesting to see how this all unfolds, and whether or not the SEC decides if they want to allow the average joe who doesn't meet these requirements to invest in crypto in the future. For now, DeFi is up and it's up to you to decide whether or not you find it to be a smart investment or not.
www.sec.gov
SEC.gov | Accredited Investor
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