Plain English
Accredited investor is a US regulatory category for individuals who meet specific income or net-worth thresholds. The current standard: $1 million+ net worth (excluding primary residence) or $200,000+ annual income ($300,000 for joint filers) for the past two years. SEC-registered private investments (most hedge funds, private equity, venture capital, syndications) are only available to accredited investors.
How it actually works
The SEC’s logic: accredited investors are presumed to have the sophistication or financial cushion to evaluate and absorb risks in private investments that retail products do not allow. Verification typically requires documentation — tax returns, brokerage statements, or written confirmation from an attorney or CPA. The category was expanded in 2020 to include holders of certain professional licenses (Series 7, 65, 82) and knowledgeable employees of private funds.
What it means for you
For HNW members, accredited-investor status is the access pass to most private investment opportunities. Without it, you are limited to public-market products. For crypto specifically, many institutional-quality structures (Maple, certain Aave permissioned markets, regulated tokenized RWAs) require accredited investor status.
We touch on accredited-investor status when discussing access to institutional-grade DeFi products and tokenized private investments. Most ARCrypto members qualify; we focus on what to do with the access.
Educational content only. Not investment, tax, or legal advice.