SEC Chair Atkins urges tailored rules to revive IPOs for smaller companies

SEC Chair Atkins has called for updated, scaled rules designed to make initial public offerings more accessible for smaller companies, arguing that targeted regulatory relief could help rebuild America’s IPO ecosystem. Speaking at a market-policy event, Atkins emphasized the need for a framework that lowers costs and administrative burdens for issuers without sacrificing investor protections.

Atkins suggested a suite of options regulators could pursue, including streamlined disclosure requirements for truly small issuers, expanded opportunities for confidential review, and clearer guidance on communications with potential investors. The goal, she said, is to strike a balance: reduce barriers that discourage promising firms from going public while preserving the transparency and oversight that underpin market confidence.

Supporters of scaled rules argue that the current one-size-fits-all regime can be disproportionately expensive and time-consuming for startups and small-cap companies, driving many to remain private longer or to seek alternative funding routes that limit broader investor participation. By contrast, proportionate requirements could lower upfront legal and accounting costs, shorten the listing timeline, and broaden the universe of firms considering a public debut.

Atkins acknowledged trade-offs and urged a cautious, evidence-based approach. Any new regime, she noted, should include safeguards such as enhanced post-listing reporting standards or phased compliance schedules to ensure investors receive critical information as companies grow. She also called for coordination with Congress and market participants to ensure reforms are feasible and enforceable.

Market participants reacted cautiously: some investors welcomed measures that could increase deal flow and diversify public-market opportunities, while others warned that looser requirements risk diluting disclosure quality. Legal and accounting advisers expect a period of rulemaking and stakeholder consultation before concrete changes emerge.

Atkins’ proposal arrives amid ongoing debate over how best to restore vibrancy to U.S. public markets. Whether the SEC moves quickly to implement specific changes—or instead pursues incremental guidance and pilot programs—will shape the near-term outlook for small-company IPO activity and the broader capital-raising landscape.