Rising Investor Risks in Crypto and Private Credit: What It Means for Your Investment Strategy in Oman
The Trump administration and the Securities and Exchange Commission (SEC) are advancing efforts to broaden US investors’ access to a wider range of products, including those linked to private credit and cryptocurrency. This initiative aims to open markets and provide more investment choices, but some financial advisors caution that it could increase the burden on individual investors to safeguard their interests.
Both the White House and the SEC, led by Chair Paul Atkins, advocate for expanding investor options to include asset classes with potentially higher returns. However, advisors warn that typical investors—who generally invest in stocks and bonds—may find it challenging to navigate the influx of new offerings expected in 2026.
Mark Stancato, founder of VIP Wealth Advisors in Decatur, Georgia, voiced concerns, saying, “Something negative will happen, and people will say, wait, I didn’t realize the risk I was taking.” He emphasized the difficulty many investors might face in making informed decisions, especially regarding retirement assets.
In response, officials from the SEC and the White House stressed their ongoing commitment to investor protection. Taylor Rogers, a White House spokesperson, affirmed that Chair Atkins is dedicated to maintaining “fair, orderly, and efficient markets while protecting everyday investors,” adding that the US remains the “best and most secure place” to invest. An SEC representative highlighted the agency’s focus on supplying investors with “robust information to make informed decisions.” Chair Atkins underscored in September the necessity of establishing proper safeguards when expanding access to private assets.
A spokesperson for the Department of Labor highlighted that forthcoming rules and guidelines will outline best practices for offering private assets and alternative retirement options. In August, the administration announced plans to facilitate easier access to private credit and equity, with the Secretary of Labor consulting multiple agencies, including the SEC. In November, Atkins noted that standard retirement vehicles, such as target date funds, often omit exposure to private assets, potentially placing investors at a disadvantage.
Presently, 401(k) and other retirement plans primarily invest in publicly traded assets through mutual funds or ETFs. While private equity and credit may offer diversification advantages, they also raise concerns related to valuation, liquidity, and the quality of investor choices.
The SEC is further expanding cryptocurrency access by accelerating the approval of new ETFs via generic listing standards introduced in September, which remove barriers to spot crypto ETFs. Robert Persichitte, a financial planner from Colorado, warned that these new products could increase risks for retail investors, who “have the most at stake and the least expertise in assessing complex products.”
Following the implementation of these standards, the number of crypto ETFs has increased significantly, with Bitwise projecting that up to one hundred more may debut in 2026. Similarly, interval funds—closed-end funds investing in private assets—have seen growth. Bryan Armour, an analyst at Morningstar, anticipates “an influx of funds that hold private assets in 2026.” He noted that while ETFs, interval funds, and target date funds are not inherently risky, the level of risk depends largely on the underlying assets involved.
— Reuters
Special Analysis by Omanet | Navigate Oman’s Market
The US push to broaden investor access to private credit and crypto markets signals a significant shift toward diversified asset exposure that businesses and investors in Oman should monitor closely. While this expansion presents opportunities for higher returns and portfolio diversification, it also introduces heightened risks around investor education, liquidity, and asset valuation. Smart investors and entrepreneurs in Oman should prepare by enhancing due diligence capabilities and developing risk management strategies to navigate this evolving landscape effectively.
