The US Securities and Exchange Commission (SEC) has proposed a comprehensive regulatory package that includes critical changes for IPOs and publicly traded companies. The announced proposal aims to facilitate stock market entry processes and fund raising opportunities not only for crypto companies, but also for all companies that want to go public in the USA.
Changing Rules in Public Offerings
This new package announced by the SEC stands out as the biggest change in the rules regarding registration in the stock exchange in the last 20 years. Officials stated that the current system has become costly and complex; It was stated that the new regulations will increase the number of public companies in the USA, which has decreased in recent years, and reduce the costs of entering the stock market.
The offering follows the IPOs or significant exits of crypto companies such as BitGo, Circle, Bullish in the US markets in the last 18 months. In addition, the importance of these changes increased as organizations such as Securitize and Kraken evaluated their IPO preparations and plans. Particularly for mid-sized crypto companies, going public in the US is expected to be both more affordable and a faster process.
Innovative Procedures and Conveniences
One of the main elements of the proposal is that newly public companies will be able to use the “shelf registration” method immediately after the public offering. Thanks to this method, companies can sell new shares more quickly and flexibly when market conditions are favorable. While the current regulation forces companies to wait for about a year, this waiting period will be eliminated with the new proposal. Additionally, the free float limit of $75 million is also being removed.
This change is particularly important for crypto companies operating in volatile markets. Because similar flexibility allows them to easily create new resources when market conditions improve. Companies that offer tokenization infrastructure such as Securitize and are mentioned for IPO will be able to raise funds quickly when investor interest rises again.
Ease of Reporting for Leading Companies
The SEC also plans to expand some of the reliefs currently granted only to the largest publicly traded companies. Approximately 36 percent of companies traded on U.S. markets today are eligible for these benefits; With the new offer, this rate will increase to 75 percent. These facilities include simplifying registration procedures, stretching communication channels during the public offering period, and allowing brokerage firms to publish more comprehensive research.
Another critical step is to increase the “large accelerated filer” status limit from 700 million dollars to 2 billion dollars. Thus, companies in this range will remain exempt from strict reporting and auditing obligations for a longer period of time. Companies that go public will be protected from the most severe reporting rules for at least five years.
Potential Consequences for Crypto Companies
SEC officials stated that short-term share price fluctuations, in particular, subject companies to heavy scrutiny earlier than necessary, and that this pressure will decrease with the new proposal. Companies will no longer have sudden reporting obligations due to short-term price movements, unless they exceed the limit value for two consecutive years.
Officials evaluated, “These changes will offer significant advantages in terms of both time and cost to companies aiming to go public in the crypto industry.”
The proposal does not include a specific regulation for crypto companies; However, after the sector faced tighter control in recent years, this expansionary approach signals a remarkable policy shift. The new rules will be open to public comment for 60 days, and at the end of this process, it will be decided whether they will be accepted or not.
