SEC launches ambitious IPO reform: Atkins proposes changing the rules of the game for public companies
SEC Chairman Paul Atkins has officially announced the launch of two major initiatives aimed at reforming the U.S. public market structure, which has not undergone significant changes in over two decades. The program, dubbed "Make IPOs Great Again," is designed to reverse a negative trend: since the mid-1990s, the number of public companies in the U.S. has declined by approximately 40%. In my opinion, this is a direct consequence of excessive bureaucracy, which forces fast-growing startups to remain in private markets where regulatory costs are significantly lower.
Two Key Proposals: Balancing Deregulation and Investor Protection
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 metric has not been updated since 2005. Additionally, for new public companies, the "grace period" with a simplified disclosure regime is extended from one year to a minimum of five years. For issuers with assets up to $35 million, the deadlines for preparing annual and quarterly reports are also extended. Currently, 52% of public companies use simplified disclosure. After the rules are adopted, their share will rise to 81%, while the remaining 19% will account for 93.5% of total market capitalization. Atkins emphasizes that these figures reflect a carefully calibrated balance between capital market development and investor protection — and I fully agree with this.
The second proposal, the Registered Offering Reform Proposal, removes outdated requirements regarding a company's operating history and the volume of shares in public float for accelerated securities registration.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 at the right time. Both rules were developed during the era of the SEC's paper-based reporting. Now, the simplified regime is extended to all U.S. public companies, not just the largest issuers that previously had special preferences.
Impact on the Crypto Market: A New "Regulatory Pathway" for Digital Companies
Atkins' approach is radically different from the policy of his predecessor Gary Gensler, which was repeatedly criticized by representatives of the crypto industry for inefficient use of resources. The changes expand investment opportunities for ordinary U.S. citizens. Atkins stated: "Every IPO is an invitation for millions of investors to become part of the success of future American companies."
Several crypto companies are already closely monitoring the conditions for going public in the U.S. In early 2026, Ledger suspended its IPO, citing market volatility, although there were earlier rumors of a potential listing with a valuation of $4 billion. If the reforms are adopted, digital companies considering a public market entry will receive a clearer "regulatory pathway."
Both proposals have been opened for public comment. In the future, the reform will also affect disclosure requirements under Regulation S-K: they will be revised based on the principle of "materiality." The next stage will show how far the SEC is willing to go beyond changes to the placement procedure itself.
My analysis: These initiatives are a powerful signal to the market of a paradigm shift in U.S. financial oversight. Lowering barriers to going public could act as a catalyst for a new cycle of IPOs, especially in the technology and crypto sectors. However, investors should remember that simplified reporting also carries risks: an influx of less mature companies could increase volatility in the early stages of their public life.