SEC Plan on Private Investors Prompts Group to Drop Rule Lawsuit

A group representing small investors and entrepreneurs abandoned its bid to force a rewrite of the SEC’s rule limiting who can invest in private securities offerings after the agency indicated it’s developing a new rulemaking proposal.

The Investor Choice Advocates Network dropped its suit Wednesday in the US Court of Appeals for the Ninth Circuit, nearly three years after petitioning the Securities and Exchange Commission to formally change the definition of an “accredited investor” to cover people typically underrepresented in US capital markets.

ICAN sued in December 2024, asking the Ninth Circuit to require the SEC to act on the ...