"Let's Make IPOs Great Again": SEC Chairman Paul Atkins Launches Two Major Reforms
Chairman of the U.S. Securities and Exchange Commission (SEC) Paul Atkins has officially introduced two key initiatives aimed at fundamentally updating rules for public companies. This is the first practical step within his ambitious "Make IPOs Great Again" program. The system, unchanged for over 20 years, will finally receive a long-awaited modernization.
Over the past 30 years, the number of public companies in the U.S. has declined by approximately 40%. Atkins links this alarming trend to the excessive growth of regulatory burdens. As a result, many fast-growing startups prefer to remain in private markets, where costs and reporting requirements are significantly lower.
Two Pillars of the New SEC Policy
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 reviewed since 2005. Additionally, the reform extends the "grace period" for new public companies: they will now 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, an extension of deadlines for preparing annual and quarterly reports is also proposed.
Currently, 52% of public companies use simplified disclosure. After the adoption of the new rules, their share will increase to 81%. At the same time, the remaining 19% of companies will still account for 93.5% of total market capitalization. According to Atkins, these figures reflect a well-calibrated balance between capital market development and investor protection.
The second initiative, the Registered Offering Reform Proposal, removes requirements regarding the company's operating history and the volume of shares in circulation for accelerated securities registration. This mechanism gives companies the ability to quickly raise capital when needed.
Both rules originated during the era of SEC's "paper" reporting. Now, the simplified regime will apply to all U.S. public companies, not just the largest issuers that previously had special privileges.
Impact on the Crypto Market
Atkins' approach differs radically from the policies of his predecessor Gary Gensler, who was repeatedly criticized for excessive pressure on the crypto industry. The recent transition of former SEC Chairman Jay Clayton to a high government position reflects broader changes in the structure of U.S. financial oversight.
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 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 opened 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"—meaning companies will primarily disclose information that is truly important to investors.
Analytical Commentary from Cryptalist: These reforms are not just technical adjustments. They signal a paradigm shift: the SEC finally acknowledges that excessive regulation is stifling the market. For the crypto sector, which has long been in the commission's crosshairs, this could be a "green light" for a full-fledged entry into traditional exchanges. The next stage will show how far the SEC is willing to go beyond changes to the listing procedure itself.