Investing in Crypto and Private Credit: What You Need to Know

Investors in the U. S. might soon see more options to put their money into crypto and private credit. This shift is happening because the Trump administration and the SEC want to give people more choices. However, some financial advisors think this could be risky for regular investors. The White House and the SEC, led by Chair Paul Atkins, want to give investors more ways to invest. They believe this can lead to higher returns. But some advisors worry that regular investors, who usually stick to stocks and bonds, might not understand these new investment options. These options are expected to grow by 2026. Mark Stancato, a founder of VIP Wealth Advisors, thinks investors might not realize the risks they are taking. He is especially worried about people making decisions about their retirement savings. The SEC and the White House say they are focused on protecting investors. They want to make sure investors have the information they need to make good decisions. The Trump administration announced plans to make it easier for individual investors to access private credit and private equity. They asked the Secretary of Labor to work with other agencies, including the SEC, to come up with rules and guidance. Atkins said that typical retirement vehicles, like target date funds, do not include these assets. This could be a disadvantage for investors.Currently, retirement plans like 401(k)s offer investments in publicly-traded assets like stocks and bonds. Opening up investing in private equity or private credit can bring diversification benefits. But it also raises questions about how to value these holdings, their liquidity, and the quality of choice for individual investors. The SEC is also helping increase investor access to cryptocurrencies. They fast-tracked the launch of new ETFs by releasing generic listing standards. This removed a hurdle for the launch of spot ETFs tied to cryptocurrencies. Robert Persichitte, a financial planner, said new offerings could raise the risks for retail investors. He believes these investors have the most at stake and the least expertise in assessing the risks of new or complex products. Since the generic listings standards were introduced, there has been a rise in new crypto ETFs. Interval funds, a form of closed-end fund that invests in private assets, have also increased. Bryan Armour, an analyst at Morningstar, expects an influx of funds that hold private assets in 2026. While ETFs, interval funds, or target date mutual funds do not represent excessive risk in themselves, the risk is determined by the nature of the underlying asset. Some in the market believe that opening up choices would benefit investors. Duncan Moir, president of 21Shares, said crypto has a meaningful role to play in investor portfolios. Bruno Sousa, a founding partner at Hashdex, said capital markets work by giving people the information they need to make free, well-informed decisions.