Coinbase CEO Brian Armstrong wants the U.S. government to tear down the barriers that keep most Americans from investing in startups and private companies. On Monday, he called for an overhaul of the accredited-investor framework, labeling the current rules a 'regressive tax' that benefits only the already wealthy.
A 'regressive tax' on investors
Armstrong didn't hold back. The rules, which restrict who can invest in private offerings based on income or net worth, are outdated and unfair, he argued. They create a system where the rich get richer by having access to high-growth opportunities that ordinary people can't touch. Calling the structure a 'regressive tax' was intentional — he said it effectively taxes the non-wealthy by locking them out of potential gains.
Who gets left out
Under current law, an accredited investor must have an annual income above $200,000 ($300,000 for couples) or a net worth exceeding $1 million, excluding their primary home. Those thresholds haven't been meaningfully updated in decades, even as inflation and asset values have risen. Armstrong argued that this wealth-based test shuts out millions of Americans who are perfectly capable of evaluating private investment risks but don't meet the financial bar. He's pushing for a system that looks at financial sophistication instead of bank account size.
Armstrong's remarks come as private markets continue to balloon — more companies stay private longer, and tokenized assets blur the line between public and private investment. But he didn't propose a specific alternative or name which government agency should take the lead. The rules are enforced by a federal regulator, though Armstrong didn't specify whether he expects that agency or another to act.
Armstrong's push for reform now sits with the government. There's no public sign of any agency moving to revise the rules. For now, the message from Coinbase's CEO is simple: the current system punishes everyone who isn't already rich.
