SEC Proposes Sweeping Reforms to Modernize Public Company Offerings and Reporting Requirements

TLDR:

• The SEC proposed raising the large accelerated filer threshold from $700 million to $2 billion in public float.
• New public companies would receive a minimum five-year IPO on-ramp before facing heightened reporting requirements.
• Approximately 81 percent of all current public companies would qualify for expanded disclosure scaling accommodations.
• All non-accelerated filers would be exempt from auditor attestation on internal controls over financial reporting.

The SEC registered offering reforms proposed on May 19, 2026, mark a sweeping shift in how public companies access capital markets.

The Securities and Exchange Commission unveiled two rulemakings aimed at reducing regulatory burdens. These changes target efficiency, flexibility, and cost savings for issuers.

Investor protections, however, remain a central priority throughout both proposals. The reforms address a long-standing decline in the number of publicly listed U.S. companies.

Registered Offering Rules See Biggest Overhaul in Two Decades

The registered offering proposal represents the most substantial modernization of the framework in over 20 years.

More public companies would gain access to shelf offerings under the new rules. Shelf offerings allow faster entry into public capital markets without prior public float requirements.

Currently, certain registration flexibilities are reserved for well-known seasoned issuers with large public floats. The proposed rules would extend these flexibilities to a broader range of companies. Broker-dealers would also be permitted to publish research on a greater number of public companies.

SEC Chairman Paul S. Atkins addressed the purpose behind the rulemakings directly. “Today, the Commission proposed two rulemakings that serve as the foundation for my agenda to Make IPOs Great Again,” Atkins said.

He added that the proposals aim to extend past legislative successes to more companies, particularly small and mid-sized issuers.

State securities law requirements would be preempted for all registered offerings under the proposal. This change would reduce the cost and complexity of multi-state capital raises. The Commission also proposed streamlining Form S-1 by allowing incorporation of information by reference.

Filer Status Thresholds Raised to Broaden Accommodation Access

The SEC also proposed raising the large accelerated filer threshold from $700 million to $2 billion in public float. This adjustment would extend disclosure scaling accommodations to approximately 81 percent of all current public companies. That marks a substantial expansion from existing eligibility levels.

The SEC noted on social media that the reforms are designed to increase efficiency, flexibility, and cost savings for public companies.

New public companies would benefit from these accommodations for a minimum of five years post-IPO. The proposal includes a 60-month IPO on-ramp before a company becomes a large accelerated filer.

Chairman Atkins further stated that the proposed rulemakings are “among the first important steps toward transforming the SEC’s regulatory framework for public companies.”

He described the goal as incentivizing companies to go and stay public. The focus remains on small and mid-sized companies that face the steepest regulatory costs.

All non-accelerated filers would be exempt from auditor attestation on internal controls over financial reporting. The smallest 18 percent of public companies by assets would receive 30 extra days for Form 10-K filings.

They would also get five additional days for Form 10-Q quarterly reports. The public comment period for both proposals remains open for 60 days after Federal Register publication.

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