Advisors warn of retail investor risks as Trump-era rules open access to crypto, private credit

Retail investors are walking into 2026 with blindfolds on. More products tied to crypto and private credit are about to be offered to everyday people in the United States as the Trump administration and Paul Atkins’ Securities and Exchange Commission (SEC) push for wider market access.

The problem is that regular investors could be left with all the risk and no safety net.

Both the White House and the SEC say they want to give people more ways to invest. They believe asset classes like private equity and crypto could bring higher returns.

But some advisors are worried that individuals won’t fully understand what they’re buying into, especially when it comes to retirement savings.

Washington moves to open markets as regulators push new products

The SEC says it’s still focused on protecting people. Taylor Rogers, a White House spokeswoman, said “Chairman Atkins is committed to making sure that the SEC maintains fair, orderly, and efficient markets while protecting everyday investors.”

But let’s be for real: the door is already being pushed wide open. The Department of Labor confirmed it’s working on new rules for how private assets can be offered to retirement investors.

In August, the Trump administration told the Secretary of Labor to team up with the SEC and other agencies to make it easier for individuals to invest in private credit and private equity. Atkins said in November that most retirement plans don’t offer access to these assets, which puts people at a disadvantage.

Right now, retirement plans like 401(k)s mostly stick to stocks and bonds through mutual funds or ETFs. Sure, letting these plans include private credit sounds like a way to diversify, but it also makes one wonder; how will these assets be valued? Can they be sold quickly? Are people even being given decent choices?

These are not small issues for someone trying to retire.

The SEC is also moving fast to unlock more crypto access. In September, it dropped a key hurdle by releasing generic listing standards that speed up the launch of spot crypto ETFs. Since then, new crypto ETFs have been rolling out, and Bitwise Asset Management says another hundred could drop in 2026.

New ETFs and funds raise pressure on retail investors

But with more products comes more risk. Robert Persichitte, a financial planner at Delagify Financial in Colorado, said these new tools might hurt the people with the least experience.

“The little guy… doesn’t have a team of advisors on their side,” he said. He warned that these products aren’t simple, and average investors won’t know how to price or exit them.

Morningstar data confirms the trend. After the SEC’s new rules, crypto ETF launches have jumped. And that’s not the only thing. Interval funds, which invest in private assets, are also rising. These funds are especially being pitched as a fit for retirement plans.

Bryan Armour, a Morningstar analyst, said, “I expect an influx of funds that hold private assets in 2026.”

Just to be clear, ETFs, interval funds, and even target-date mutual funds aren’t risky on their own. No, what matters is what they’re holding inside, and once you start loading them with volatile assets like crypto or hard-to-sell things like private credit, the whole game changes.

Some market players are cheering the changes. Duncan Moir, president of 21Shares, which has launched six crypto ETFs recently, said crypto has “a meaningful role to play in investor portfolios.” But that’s only true if the investor knows what they’re doing. And let’s be honest, most don’t.

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