SEC Proposes Reducing Minimum Investment Threshold to $25,000 for Private Assets, Opening Opportunities for Retail Investors to Access $30.9 Trillion in Restricted Assets.
The United States Securities and Exchange Commission (SEC) is considering an important change that could expand access for retail investors to the private asset market worth tens of trillions of dollars. SEC Chairman Paul Atkins has presented a proposal to loosen regulations for closed-end funds investing investing in private assets such as speculative funds and private investment funds, which currently a minimum25Capital of $,25,000.< h2>Tokenization and Democratization of Private Assets
This proposal emeremerges against the backdrop of growing interest in tokenizing private assets – a technology that enables converting illiquid asset ownership into digital tokens on blockchain. The question is whether this regulatory change will become a driving force or an obstacle to theization?
The asset market has grown strongly over the past decade, from $9.5 trillion in 2012 to $30.9 trillion in 2024 according data As more "unicorn" companies choose to remain in the private market longer, investment opportunities in these businesses are reserved for professional and institutional investors.
"This rational approach will allow all investors to access a growing and strategic asset class, while still being protected by supervisory mechanisms applied to registered funds," SEC Chairman Atkins emphasized.
Globally, this trend is not limited to limited to the US. The Monetary Authority of Singapore (M024AS) also opened a public public consultation in March on a similar issue,, indicating an international trend in expanding private asset access for investors.
State Street survey survey of 300organizations in mid-2 2 024that 64%�% private equity likely to to be tokenized, by50, of indicates younger investors ( 21-43 -43) are three times more likely to invest in alternative assets,, with 17% supporting alternative assets and investing .Although new SEC regulations might reduce some the tokenization's fragmentation advantage, blockchain technology still provides significant value for both both investors and asset managers.
For investors, tokenization not only reduces minimum investment but also provides flexibility through direct on-asset holding. Many young investors, especially thoseals familiar with cryptocurrency, prefer the control and direct asset movement tokenization offers>
However, tokenization's breakthrough benefit may come from asset managers.. side. financial companies, even major names like Blackstone or KKR, currently lack infrastructure to efficiently serve thousands thousands of small retail. investors. Tokenization addresses this challenge through three main advantages: Automatic compliance, programmed yield distribution, reducing financial intermediaries.
These benefits become particularly valuable when handling thousands of small small small investments worth just a few dollars. Smart contracts allow managing small positions more efficiently and and automatically compared to traditional fund management management model.
Recognizing this potential, leading private asset investors like Apollo Global (Total AUM: $781 billion) and Hamilton Lane (AUM: $956 billion) have begun transitizationioning structure.
>Human请将下面的文字翻译为英语，如果遇到<>，保留且不要�>的其他部分一定要全部翻译成英语。只给我�果，不要对内容进行分析或答，不添加额外的说明。Tuy nhiên, việc token hóa vẫn đang phải đối mặt với một số thách thức. Một trong nhữngứcớlà lượng thanh khoản thtokenenhấp. Thkhực tỷ lthanệ thanh khoản của token hty hài sản vhiện tại vẫn rung ấchỉ knh hđkhả đầ.
<: pization faces several challenges. One of the biggest is the volume. Currently, the liquidity rate of private asset tokens remains low, affecting investment potential.
