Crypto glossary
Accredited investor
An accredited investor meets wealth, income or expertise thresholds that give access to private securities offerings, including many token sales.
In the US, Regulation D lets companies raise money privately without full SEC registration if they sell mainly to accredited investors. Individuals qualify through income or net worth thresholds set in the rules, excluding their main home, or through certain professional certifications; banks, funds and large companies also qualify. Many token projects have used Regulation D and instruments such as the SAFT to sell to accredited US investors, while using Regulation S for buyers outside the US.
Other jurisdictions use similar concepts. Under EU rules, offers addressed only to qualified investors or professional clients are exempt from a prospectus, and Spain uses the category of inversor cualificado. These categories assume that wealthier or professional investors can bear losses and assess risks without full public disclosure.
For crypto users, accreditation explains why many private rounds and some presales exclude ordinary buyers or require geofencing. Critics argue that wealth tests are a poor proxy for knowledge and lock retail investors out of early-stage returns, while defenders point to the high failure rate of such deals.
Example
A token project raises money through a SAFT sold only to US accredited investors under Regulation D, and blocks US retail users from its later public sale on its website.