Since the times of global pandemic, alternative assets have become an investing trend. In just five years, investing in private equity, real estate and even tokenized funds is expected to increase from modest $15 trillion in 2022 to more than $24 trillion in assets in 2028.

However, the global regulations for this asset class are quite uneven. Europe is tightening oversight, the UK is experimenting with new rules, and Asia is advancing at a faster pace compared to others. As a result, the overall regulatory picture in the alternatives sector remains fragmented. To make things clearer, let's break down why we have to watch out for this market and what the new regulations are about. 

Why are alternatives so attractive?

Alternative investments attract attention because they provide access to unique and diverse assets, not available in traditional markets. Unlike stocks of monopolistic companies, these assets are often less interconnected, which reduces risks and increases the upside with the right choice of projects.

And, just as importantly, alternatives also mean investing in the real economy through infrastructure projects. For example, buying the share of the constructing building can be more tangible than supporting Fortune 500 growth. 

Then, another point, often overlooked, is resilience. Alternatives can naturally perform better in turbulent times. As they show lower correlation to public equities, their stability becomes highly valuable, especially when we consider that for now the world is in a state of high inflation and geopolitical uncertainty.

The main new rules in 2025-2026

As crypto is the part of alternative investments, one of the most important updates in regulation is the EU's Markets in Crypto-Assets Regulation (MiCA), which formally took effect in 2024. It sets a unified framework across all EU member states, protecting investors from suspicious projects and providing legal certainty for crypto companies operating in the region. To everyone investing in alternatives, it's a remarkable step: if before we saw crypto as a high-risk opportunity, now it's much more regulated.

The United Kingdom has decided to take a different path. To be precise, the same year as MiCAA appeared, the UK launched its Digital Securities Sandbox. And with the plans to work closely with the US regulatory bodies to introduce common oversight and crypto companies’ passporting mechanisms, London is presenting itself as an experimenting laboratory.

The US has stood out with its famous GENIUS Act. The new law, designed to create clear rules for payments in stablecoins, has become a precedent for being the first comprehensive crypto legislation. But speaking more generally about alternatives, the US president also signed an Executive Order on this class of assets in August 2025. The new directive aims to attract more participants in U.S. employer-sponsored defined-contribution retirement plans to invest in alternative assets. 

Meanwhile, across the ocean in Asia the progress is no less. Hong Kong, Singapore, and South Korea all opened the door to crypto-linked ETFs over the past year. Beyond crypto ETFs, Asia is the one of the leaders of tokenized assets. For example, Singaporean Monetary Authority (MAS) finalized this year token classification as securities, thus giving these assets a reliable legal base. Notably, real estate tokens have already gained strong traction in Asia, especially for those that do not want to buy an apartment but want a part of the ever-growing market. 

New regulation can be a magnet for capital

There is a common belief that heavier regulation scares capital away. In reality, it's a misleading position. A study on Dutch institutional investors found that regulatory harmonization greatly increased investments into private equity funds. Strict rules like IFRS and Basel II gave institutional investors more confidence, raising the chances they would pour in more capital, both at home and across borders. When investors perceive regulations as reliable, they are willing to give more. 

New regulations are also good for the reputation for alternative assets. Not so long ago, they were considered risky and worth investing only in times for cheap credit, particularly when speaking about crypto. However, now, the narrative has changed to considering alternative assets as a regulated, secure opportunity.

The next step is just alignment. Countries have to work together to reach harmonization around alternatives regulations across the globe. Without it, capital will keep flowing from one jurisdiction to another in search of regulatory arbitrage. A more coherent map will accelerate the maturity of the alternatives as a whole asset class.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy