SEC Reevaluates 15% Cap on Private Fund Investments, Potentially Expanding Retail Access

The Managed Funds Association (MFA) has endorsed the Securities and Exchange Commission’s decision to revisit a decades-old policy limiting closed-end funds from allocating more than 15% of their assets to private funds. MFA CEO Bryan Corbett called the restriction "arbitrary" and emphasized that its revision could democratize access to alternative investments for retail investors.

SEC Chairman Paul Atkins signaled the potential policy shift during prepared remarks at the "SEC Speaks" conference in Washington D.C. The move aligns with growing institutional recognition of private markets as critical for portfolio diversification and wealth building. While the announcement didn’t reference specific digital assets, the decision could indirectly benefit crypto investment vehicles seeking broader capital inflows.