Policy Levers Reg D Reform
$1,000,000
SEC Rule 501 traditional gate (excl. primary residence).
$200,000
Individual annual income floor for preceding 2 years.
75%
Required score on standardized capital markets competency exam.
150,000,000
Total addressable adult investing population.
Comparative Market Eligibility Feasibility: High
Literacy-Accredited
67,500,000
45.0% of retail population
Wealth-Accredited
18,000,000
12.0% baseline SEC reach
Investor Expansion
+275.0%
+49,500,000 newly eligible
Demographic Access Distribution (Millions of Citizens)
Real-time D3 Model
| Framework Dimension | Traditional Net-Worth Standard | Armstrong Competency Proposal |
|---|---|---|
| Qualification Criterion | $1M liquid net worth or $200k income | Verified financial literacy passing grade |
| Eligible Investors | 18,000,000 (12.0%) | 67,500,000 (45.0%) |
| Socioeconomic Gate | Restricts private equity/crypto to top 12% | Democratizes access based on investor merit |
| Investor Protection | Assumes wealth equates to sophistication | Directly evaluates risk, leverage, and valuation skills |
Simulated Policy Impact Assessment
Under this configuration, testing competency expands accredited investor eligibility from 18,000,000 to 67,500,000 citizens, achieving an investor expansion of 275.0%. SEC adoption viability is scored as High.