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VC Regulation 2.0

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Rethinking VC regulations from first principles

Hi - I am having conversations with officials in central Asia about changes to the regulations, besides the problems mentioned above in the US. What problems are there in the UK system? Are there any gold standards in countries that exist? Are there any regulations that one would cherry-pick from a country?
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Imagine a world where anyone can invest in the next big thing, not just the wealthy elite. Where founders can freely share their exciting ideas for investment, and early employees can actually sell their startup shares without jumping through endless hoops. 


Right now, outdated US government rules are blocking millions from participating in venture capital – the very engine that helped build companies like Apple, Google, and SpaceX. These rules were written decades ago, allegedly to "protect" people, but they're really just keeping opportunities away from most of humanity. 

What needs to change: 

  • Kill the millionaire rule: Why should you need a 7-figure bank account to invest in the next big thing? (Rule 501 - Accredited Investor Definition)
  • Let founders tell their story: End the ridiculous ban on founders publicly discussing their startups (Rule 506b/c - General Solicitation)
  • Free startup shares: Stop trapping employee equity in golden handcuffs (Rule 144 - Holding Periods)
  • Break down the barriers: Why should artificial limits stop people from investing what they can afford? (Investment Company Act Sections 3(c)(1) & 3(c)(7))
  • Make transparency the shield: Real-time disclosure protects investors better than outdated investment restrictions (Form D Requirements)
  • Build the future of trading: It's time for private markets to work as smoothly as public ones (Securities Act Section 4(a)(7))

Many rules need to change, and the timing is perfect. Leaders like Elon Musk, David Sacks, J.D. Vance, and Paul Atkins understand startups and can help reform these rules. This could unleash the biggest wave of innovation and wealth creation in modern history – and this time, everyone gets to participate.
 

💡 What rules would you change?


Let's build a list of outdated rules that need to go and propose better alternatives.
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