US investors may soon access a wider array of products tied to private credit and crypto as the Trump administration and SEC push to open markets. Some advisors warn this shift could place greater responsibility on individuals to protect themselves.
Both the White House and the Securities and Exchange Commission (SEC), under Chair Paul Atkins, support offering investors more choice to tap into asset classes with potentially high returns. Still, financial advisors caution that typical investors, who mainly hold stocks and bonds, may struggle to understand the influx of new offerings expected in 2026.
“Something negative will happen, and people will say, wait, I didn’t realize the risk I was taking," said Mark Stancato, founder of VIP Wealth Advisors in Decatur, Georgia. He expressed concern that investors may struggle to make informed decisions, particularly about retirement assets.
The SEC and White House said they remain focused on investor protection. “Chairman Atkins is committed to ensuring the SEC maintains fair, orderly, and efficient markets while protecting everyday investors," said Taylor Rogers, a White House spokeswoman, adding the US remains the "best and most secure place" to invest. An SEC spokesperson said the agency is focused on providing investors with “robust information to make informed decisions.” Atkins noted in September that opening access to private assets requires proper guardrails.
A Department of Labor spokesman said rules and guidance will set best practices for offering private assets and other retirement alternatives. In August, the administration announced plans to give individuals easier access to private credit and equity, with the Secretary of Labor consulting other agencies, including the SEC. In November, Atkins noted that typical retirement vehicles, such as target date funds, forgo exposure to these assets, which can disadvantage investors.
Currently, 401(k) and other retirement plans offer exposure to publicly traded assets via mutual funds or ETFs. Private equity and credit may provide diversification benefits but raise questions over valuation, liquidity, and investor choice quality.
The SEC is also expanding crypto access by fast-tracking new ETFs through generic listing standards released in September, removing barriers to spot crypto ETFs. Robert Persichitte, a financial planner in Colorado, said new offerings could increase risks for retail investors, who “have the most at stake and the least expertise in assessing complex products.”
Since the new standards, crypto ETFs have surged, with Bitwise projecting another hundred may launch in 2026. Interval funds, closed-end funds investing in private assets, have also grown. “I expect an influx of funds that hold private assets in 2026,” said Bryan Armour, a Morningstar analyst.While ETFs, interval funds, or target date funds are not inherently risky, the underlying asset determines risk. — Reuters
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