SEC Launches the 'Era of Great IPOs': Atkins Proposes Historic Reform
SEC Chairman Paul Atkins has launched two ambitious initiatives aimed at fundamentally reshaping the public capital market landscape. This is the first practical implementation of his "Make IPOs Great Again" agenda — and judging by the scale, we are witnessing the beginning of a long-awaited dismantling of an outdated regulatory framework that has not been updated in over two decades.
Why reform is overdue: 40% of companies have gone into the shadows
The statistics are relentless: since the mid-1990s, the number of public companies in the U.S. has declined by approximately 40%. Atkins directly points to the cause — excessively expanded regulatory requirements. Rapidly growing companies, especially in the technology and cryptocurrency sectors, increasingly prefer to remain in private markets, where costs and bureaucracy are incomparably lower. My analysis confirms: we have long observed an "IPO crisis," where issuers fled from the SEC to jurisdictions with more flexible rules.
Two key changes
The first initiative (Filer Status Proposal) is a revolution in reporting thresholds. The threshold at which a company is required to disclose full information is raised from $700 million to $2 billion in market capitalization. This threshold has not been reviewed since 2005. Additionally, the "grace period" for new public companies is extended from one year to five years. For companies with assets up to $35 million, a deferral is proposed for preparing annual and quarterly reports.
Currently, 52% of public companies use the simplified disclosure regime. After the reform is adopted, their share will grow to 81%. At the same time, the remaining 19% will account for 93.5% of total market capitalization. Atkins calls this a "carefully calibrated balance" between market development and investor protection — and I agree with him. This is a sound compromise.
The second initiative (Registered Offering Reform Proposal) removes requirements regarding the company's operating history and the volume of shares outstanding for accelerated securities registration. This gives companies the ability to quickly raise capital when needed, without bureaucratic delays.
Cryptocurrency industry: new horizons
For the crypto market, these reforms are a breath of fresh air. Atkins' approach is strikingly different from Gary Gensler's policy, which, in the view of many, stifled innovation. Several crypto companies are already closely monitoring the changes. Recall that in early 2026, Ledger suspended its IPO due to market volatility, and earlier there were rumors of a potential listing with a valuation of $4 billion. If the reform is adopted, digital companies will receive a clear "regulatory pathway" and significantly reduce the costs of going public.
Looking ahead
Both proposals have been put out for public comment. Atkins also announced a review of disclosure requirements under Regulation S-K based on the principle of "materiality" — companies will only disclose data that is truly important to investors.
My verdict: This is not just cosmetic tweaks. This is a fundamental shift in the SEC's philosophy. If the reforms go through, we will see an explosive increase in the number of IPOs, including from crypto companies that have long been waiting for the green light. The U.S. capital market is returning to its roots — being a driver of economic growth, not a bureaucratic barrier.