"Let's Make IPOs Great Again": SEC Chairman Atkins Launches Two Major Reforms
SEC Chairman Paul Atkins has introduced two ambitious initiatives aimed at fundamentally overhauling the structure of public companies, which has not seen significant changes in over two decades. The main goal is to dramatically expand access to initial public offerings (IPOs) for more companies and retail investors, restoring the capital market's former appeal.
This is the first official step under Atkins' "Make IPOs Great Again" program. Since the mid-1990s, the number of public companies in the U.S. has declined by approximately 40%. In my deep conviction, shared by the SEC Chairman, the primary reason is the excessively bloated volume of regulatory requirements. It is precisely because of this that many fast-growing organizations are turning to private capital markets, where costs and bureaucratic barriers are significantly lower.
What the New SEC Rules Propose
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 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, it is proposed to extend the deadlines for preparing annual and quarterly reports.
Currently, 52% of public companies benefit from simplified information disclosure. After the rules are adopted, their share will increase to 81%. The remaining companies will still account for 93.5% of total market capitalization. Atkins emphasizes that these figures reflect a well-calibrated balance between capital market development and investor protection.
The second proposal, the Registered Offering Reform Proposal, removes requirements for a company's operating history and the volume of shares in circulation for accelerated securities registration. This mechanism will give companies the ability to quickly raise capital when needed, without unnecessary bureaucratic delays.
Both rules date back to the era of SEC's paper-based reporting. Now, the simplified regime will be extended to all U.S. public companies, not just the largest issuers, for whom it previously provided special advantages.
How the Reforms Will Impact the Crypto Market
Atkins' approach differs markedly from the policies of his predecessor Gary Gensler, which were repeatedly criticized by representatives of the crypto industry. In their view, measures to control the crypto market led to inefficient use of resources and stifled innovation.
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. Earlier, there were reports of a potential listing with a valuation of $4 billion. If the changes are adopted, digital companies considering entering the public market will receive a clearer and more predictable "regulatory pathway."
Both proposals have been put up for public comment. Atkins added that further reforms will also address disclosure requirements under Regulation S-K: they will be revised based on the principle of "materiality." That is, companies will primarily disclose information that is truly important to investors. The next stage will show how far the SEC is willing to go beyond changes to the listing procedure itself.
My analysis: These reforms are not merely cosmetic changes. They signal a paradigm shift in U.S. regulation. If implemented, we will see not only a revival of the IPO market but also a significant simplification of the path to going public for crypto companies, which have long been forced to seek alternative ways to raise capital. This could become a catalyst for a new wave of institutional adoption of digital assets.