"Let's Make IPOs Great Again": Atkins Launches Major U.S. Capital Market Reform
SEC Chairman Paul Atkins has introduced a long-awaited reform package aimed at fundamentally overhauling the initial public offering (IPO) process. Two new initiatives are designed to breathe life into the U.S. capital market, which has not seen systemic changes in over two decades.
The program bears the telling name — "Make IPOs Great Again." And this is not just a slogan. Over the past 30 years, the number of public companies in the U.S. has declined by approximately 40%. Atkins directly links this trend to the excessive growth of regulatory burden. Fast-growing companies increasingly prefer to remain in private markets, where reporting requirements and associated costs are significantly lower. The current structure has become a drag on economic growth.
Two Key SEC Proposals
The first initiative, the Filer Status Proposal, raises the market capitalization threshold at which a company is required to disclose information in full from $700 million to $2 billion. This threshold has not been revised since 2005. Additionally, the reform significantly extends the "grace period" for new public companies: after going public, they will be able to remain in a simplified reporting regime for at least five years instead of one year. For companies with assets up to $35 million, extended deadlines for preparing annual and quarterly reports are also proposed.
Currently, 52% of public companies use simplified disclosure. After the rules are adopted, their share will increase to 81%. At the same time, the remaining 19% will account for 93.5% of total market capitalization. According to Atkins, this is a well-calibrated balance between capital market development and investor protection.
The second proposal, the Registered Offering Reform Proposal, removes requirements regarding the company's operating history and the volume of shares in public float for accelerated securities registration. This mechanism will give companies the ability to quickly raise capital when needed, without bureaucratic delays.
Both rules were developed back in the era of SEC paper reporting. Now, the simplified regime will be extended to all U.S. public companies, not just the largest issuers that previously had special privileges.
Impact on the Crypto Market
Atkins emphasized that the changes expand investment opportunities for ordinary U.S. citizens. His approach stands in stark contrast to the policies of Gary Gensler, which representatives of the crypto industry have repeatedly criticized for inefficient use of resources and hostility toward innovation.
Several crypto companies are closely monitoring the conditions for going public in the U.S. In early 2026, Ledger suspended its IPO, citing market volatility. Earlier, there were reports of a potential listing with a valuation of $4 billion. If the changes are adopted, digital companies considering a public market entry will receive a clearer "regulatory pathway."
Both proposals have been put up for public comment. Atkins added that the reform will later also affect disclosure requirements under Regulation S-K: they will be revised based on the principle of "materiality." Companies will primarily disclose information that is truly important to investors.
My analysis: This is undoubtedly the most significant step by the SEC in recent years. Lowering barriers to going public could become a catalyst for a new wave of IPOs, especially in the technology and cryptocurrency sectors. For investors, this means expanded access to promising assets at early stages. However, the key question is how quickly these reforms will be adopted and whether they will face resistance from traditional financial institutions. For now, markets are pricing in a positive scenario.