Accredited Investor
A person or entity that meets income or wealth tests, letting them buy investments barred to the public.
In the US the bar is a net worth above one million dollars excluding a primary home, or income over 200,000 dollars for two straight years. Clear it and regulators assume you can shoulder the risk of unregistered offerings.
Many early token sales and venture rounds restrict themselves to accredited buyers to sidestep public-securities rules. Critics say the threshold locks ordinary people out of the highest-growth deals; defenders say it shields them from the steepest losses.
Related terms
The US federal agency that oversees securities markets and has become crypto's most prominent enforcement regulator.
Security TokenA token representing a regulated investment — equity, debt, or a share of profits — and subject to securities law.
Howey TestA US legal standard from a 1946 Supreme Court case used to decide whether an asset counts as a security.
ICO (Initial Coin Offering)A crowdfunding method where a project sells a new token to the public to raise capital.