FOR IMMEDIATE RELEASE December 12th, 2024
Nonprofit Organization Takes Action to Break Down Barriers to Investment Opportunity After Two Years of SEC Silence
LOS ANGELES - The Investor Choice Advocates Network (ICAN), a nonprofit organization dedicated to expanding investment opportunities and improving access to capital markets, has filed a petition for writ of mandamus with the Ninth Circuit Court of Appeals challenging the SEC's failure to act on ICAN's 2022 rulemaking petition regarding the "accredited investor" definition.
ICAN's original petition urged the SEC to replace outdated wealth and income requirements with non-financial criteria based on knowledge and experience. Despite the SEC's obligation to review the accredited investor definition every four years, and its completion of such a review in December 2023, the agency has failed to respond to ICAN's petition for reform.
"In an era where anyone can gamble on sports from their phone, it's absurd that the SEC bars 90% of Americans from private market investment opportunities based solely on their wealth," said Nicolas Morgan, President and founder of ICAN. "With a declining number of publicly traded companies in the U.S. today, average investors have limited options for building wealth through the markets. Our petition offers a clear path to maintain investor protection while expanding opportunity, but the SEC has chosen to ignore it."
The current accredited investor definition requires individuals to have either $1 million in net worth or annual income of $200,000 ($300,000 with a spouse) to participate in most private investment opportunities. These requirements disproportionately impact underrepresented communities and perpetuate systemic barriers to wealth creation.
"The SEC's inaction particularly harms entrepreneurs in underserved communities," Morgan added. "Many founders rely on friends and family for crucial early-stage funding, but arbitrary wealth requirements often block these natural supporters from investing. This doesn't protect investors—it protects the status quo."
ICAN's legal action comes as bipartisan support grows for expanding investment access. Senator Tim Scott's Empowering Main Street in America Act (EMSAA) proposes creating new pathways for Americans to qualify as accredited investors, aligning with ICAN's mission to democratize investment opportunities.
The petition asks the Court to compel the SEC to act on ICAN's rulemaking petition within 30 days. A victory would represent a crucial step toward creating a more inclusive financial system that works for all Americans, not just the wealthy.
For more information about ICAN and its ongoing efforts to support investor rights, please visit www.icanlaw.org or contact: info@icanlaw.org
About ICAN: The Investor Choice Advocates Network (ICAN) is a nonprofit organization dedicated to breaking down barriers to entry to capital markets and pushing back against regulatory overreach. ICAN advocates for fair and transparent regulatory practices, ensuring all individuals have equal access to investment opportunities and due process in the financial markets.
Contact Information: Investor Choice Advocates Network (ICAN) Email: info@icanlaw.org Website: www.icanlaw.org
View the Petition Here
