If this adjustment were made to 2022 dollars, approximately 6.5% of U.S. households would have qualified as accredited investors. It is unclear why having fewer accredited investors, whether at 6.5% or 1.8% of U.S. households, is preferrable to having more accredited investors. Black and Hispanic investors qualify as accredited investors at a lower rate than White and Asian American investors. But, if that person has a dollar less, then he or she cannot invest in any offering limited to accredited investors. Unfortunately, no regulatory regime can completely eliminate fraud, which occurs at private companies, just as it occurs at public companies.

Source: Wall Street Journal January 22, 2024 18:56 UTC