Crypto news

SEC Chairman Paul Atkins has introduced two major initiatives aimed at modernizing the initial public offering (IPO) process. This is the first significant step in his ambitious "Make IPOs Great Again" program. The regulator intends to breathe new life into the public market, which has lost about 40% of its issuers over the past 30 years.

The key reason for this decline, in my firm belief, is the hypertrophied regulatory burden. Many fast-growing companies prefer to remain private, where costs and reporting requirements are significantly lower. Atkins proposes to radically change this paradigm.

Two Reforms to Revitalize the Market

The first initiative — the Filer Status Proposal — raises the market capitalization threshold at which a company is required to provide full reporting from $700 million to $2 billion. This threshold has not been revised since 2005. Additionally, the "grace period" for new public companies is extended from one year to five years. For issuers with assets up to $35 million, it proposes easing the deadlines for filing annual and quarterly reports.

Currently, 52% of public companies use the simplified disclosure regime. After the reform is adopted, their share will rise to 81%. At the same time, the remaining 19% of companies will account for 93.5% of the total market capitalization. In my view, this is an ideal balance: reducing the burden on small and medium-sized businesses while maintaining strict standards for giants.

The second initiative — the Registered Offering Reform Proposal — removes requirements for a company's operating history and the volume of shares in public float for accelerated securities registration. This gives issuers the ability to quickly raise capital when needed, without bureaucratic delays.

Both proposals were developed back in the era of SEC's "paper" reporting. Now, the preferential regime will be extended to all U.S. public companies, not just the largest issuers.

What Does This Mean for the Crypto Industry?

Atkins' approach is strikingly different from the policy of his predecessor Gary Gensler, who was repeatedly criticized for excessive pressure on the crypto market. The SEC reforms are a clear signal: the regulator is opening doors for new issuers, including companies from the digital sphere.

Already, several crypto companies are closely monitoring the situation. Recall that in early 2026, Ledger suspended its IPO, citing market volatility. If the changes are adopted, digital companies will gain a clearer and more predictable "regulatory pathway" for going public.

Both proposals have been put up for public comment. Atkins also announced the next stage of the reform — a review of disclosure requirements under Regulation S-K based on the principle of "materiality." This means companies will only disclose data that is truly important to investors.

My expert conclusion: Atkins' initiatives are not just technical tweaks, but a fundamental restructuring of the SEC's philosophy. If the reform is implemented, we will see a wave of new IPOs, including from the crypto sector. The U.S. capital market will finally adapt to the realities of the 21st century, and this could become a powerful catalyst for the entire industry.