Gensler Cautions Against Weakening Guardrails for Retail Traders

Outgoing SEC Chair Gary Genslerhas a word of caution for the next administration: be careful about messing with the guardrails that protect mom-and-pop traders.

Going too far in rolling back disclosure requirements or broadening the definition of who qualifies as an “accredited investor” could harm the public, Gensler said in an interview Friday.

Critics have contended the accredited investor rule, which seeks to protect retail traders from potential risks in private investments, stifles growth. Project 2025, an initiative intended as a policy blueprint for the incoming Trump administration, calls for financial regulators to broaden the definition of an accredited ...