U.S. Securities and Exchange Commission Commissioner Caroline A. Crenshaw used a Better Markets conference speech to warn that efforts to expand retail investor access to private markets are blurring the public–private market boundary without matching disclosure, liquidity protections, or oversight. Crenshaw argued that the public–private divide reflects a regulatory bargain of broader access in exchange for more transparency and supervision, and pointed to the scale of private-market growth, with Regulation D private placements rising from USD 588 billion in 2009 to USD 2.15 trillion in 2024 and SEC-reporting private funds’ gross reported assets under management increasing from USD 8 trillion in Q1 2013 to USD 24.3 trillion in Q3 2024. She highlighted Commission actions and potential reforms that could accelerate retail exposure, including staff-position changes affecting closed-end funds’ private-investment limits, expanded co-investment relief for certain closed-end funds and business development companies, and possible changes to the “Accredited Investor” and “Qualified Purchaser” definitions. The speech also questioned whether private markets are an appropriate destination for retail retirement savings given cited underperformance versus large-cap U.S. stocks over one-, three-, and five-year periods, higher fees, the risk of retail investors receiving less desirable assets, and liquidity mismatches that can lead to prolonged redemption limits. On oversight, Crenshaw contrasted the push for retail access with the vacatur of the Commission’s 2023 private fund adviser rules and criticised repeated extensions of the compliance date for the 2024 Form PF amendments, including a further one-year extension, arguing that delaying enhanced reporting undermines the SEC’s ability to monitor systemic risk as private markets expand and as the Commission explores reconsidering Form PF more broadly.
U.S. Securities & Exchange Commission 2025-09-19
U.S. Securities and Exchange Commission Commissioner Crenshaw calls for guardrails before widening retail access to private markets
SEC Commissioner Caroline Crenshaw, at a Better Markets conference, warned against expanding retail investor access to private markets without proper disclosure, liquidity protections, or oversight. She noted private markets' growth and discussed reforms like changing investment limits and definitions of "Accredited Investor." Crenshaw questioned private markets' suitability for retail retirement savings and criticized delays in enhanced reporting requirements, arguing they weaken the SEC's ability to monitor systemic risk.