Proposals aim to cut compliance costs and boost public listings amid a decades-long decline in U.S. public companies.
The U.S. Securities and Exchange Commission proposed sweeping changes to simplify public company reporting requirements, targeting lower compliance costs while maintaining investor protections. The reforms would modernize the framework for the first time in over 20 years, expanding access to shelf registrations and research coverage for smaller firms.
The SEC seeks to reverse a multi-decade decline in public companies by tailoring disclosure rules to company size and stage. Current rules have been criticized for discouraging listings, with the number of U.S. public companies falling by nearly half since the 1990s. The proposal also pre-empts state securities registration requirements for registered offerings.
Key measures include allowing more companies to use shelf registrations for faster capital access and enabling broker-dealers to publish research on a broader range of firms. The SEC described the plan as part of a broader effort to incentivize companies to go and remain public.