The SEC is going to ease the listing requirements for small companies: a two-year transition period + redefining the standards for small enterprises.

[Coin World] The SEC is serious this time - preparing to ease restrictions for small companies to go public.

Chairman Paul Atkins recently made a big move at an event at the New York Stock Exchange: he plans to cut the disclosure requirements that trouble small businesses and intends to adjust compliance standards based on company size. In other words, it’s to allow more small companies to successfully go public.

How exactly does it work? The key point is that a longer buffer period has been provided. Previously, newly listed companies had only one year to adapt to the rules, but now it has been extended to at least two years. This means that companies can take their time, gradually disclose information to investors, and submit various reports, without having to accomplish everything all at once.

The SEC will also redefine what constitutes a “small business” - the last time this standard was adjusted was twenty years ago. Atkins himself lamented that there are nearly half as many publicly listed companies in the U.S. now compared to thirty years ago.

His original words were quite straightforward: “Our regulatory framework should provide a path to IPO for companies at all stages and in all industries.” After all, compliance costs are indeed too heavy for some companies, and this unequal pressure needs to be adjusted.

If this operation is implemented, the IPO reserve pool may become quite lively.