The Securities and Exchange Commission is currently reevaluating the definition of what constitutes an "accredited investor," the benchmark against which the SEC determines if an individual investor is eligible to invest in private ventures.
The SEC review process doesn't go nearly far enough. By solely revisiting (and possibly readjusting) the existing accreditation criteria, the SEC is missing a hugely important point: Using wealth as the sole measure of investment acumen means the SEC is essentially saying that rich people are smarter than the less wealthy.
What makes an investor "sophisticated" enough to have access to private investments? The SEC starts by assuming it has to be some measure of income or net worth.
It's an arbitrary assumption that's outdated at best and elitist at worst.