The recent downfall of Archegos Capital Management (Archegos) has sparked a debate over whether family offices should receive a heightened level of regulatory scrutiny. United States lawmakers are considering 11 bills to increase regulatory oversight of family offices that have more than $750 million in assets, retail trading practices or short selling. 

According to WealthManagement, critics of the proposed regulation believe the regulatory focus instead should shift to the systematic risk large, individual, or family investors impose on others in the securities markets and banking system. There are several regulatory programs to assist investors and financial services institutions in avoiding or mitigating any systemic risks that a large investor might pose. 

Critics also point to the benefits offered by family offices., including the philanthropic efforts of many family offices. Increased regulation may impair their ability to fund startups that promote meaningful innovation. 

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