The SEC is signaling a major shift in how it approaches public markets, capital formation, and disclosure obligations. A series of speeches, proposed rule changes, and policy statements from SEC leadership suggest the agency is actively working to reduce friction for companies considering going public — particularly smaller and growth-stage businesses.

For startups, emerging growth companies, and investors, this may represent one of the most significant public markets policy shifts in years.

The SEC’s New Direction

SEC Chairman Paul Atkins has repeatedly emphasized concerns about the long-term decline in U.S. IPO activity and the shrinking number of public companies in the market. According to recent SEC remarks, the number of publicly traded companies has declined by approximately 40% since the mid-1990s.

SEC leadership has framed the issue as a capital formation problem caused, in part, by increasingly burdensome disclosure and reporting requirements.

The agency’s response appears to center around a broader initiative informally described as “Make IPOs Great Again,” which focuses on:

• Streamlining disclosure requirements

• Expanding accommodations for smaller public companies

• Reducing reporting burdens

• Encouraging earlier access to public markets

• Re-centering SEC disclosures around “materiality” rather than regulatory overreach

Proposed Semiannual Reporting Could Reshape Public Company Compliance

One of the SEC’s most notable recent proposals would allow reporting companies to file semiannual reports instead of quarterly Form 10-Q filings.

Under the proposal:

• Companies could elect to file a new Form 10-S covering six-month reporting periods

• The option would be available to all reporting companies

• Filing deadlines would remain largely consistent with current timelines

• Companies would elect their reporting cadence annually through their Form 10-K

If adopted, this would represent a substantial departure from the traditional quarterly reporting framework that has governed U.S. public companies for decades.

For smaller issuers especially, reduced reporting frequency could materially decrease compliance costs, management distraction, and legal/accounting burdens.

Expanded IPO “On-Ramps” for Emerging Companies

The SEC is also evaluating ways to expand accommodations traditionally reserved for emerging growth companies under the JOBS Act.

Current emerging growth company benefits often sunset within five years of an IPO. SEC leadership has suggested extending these “on-ramp” periods so smaller companies can remain public without immediately facing the full weight of large-company reporting obligations.

This could create a more founder-friendly path to public markets by allowing companies to scale into public company compliance over time rather than all at once.

Faster Capital Access Through Shelf Registration Reform

SEC leadership has also criticized current “baby shelf” limitations that restrict smaller public companies’ ability to quickly access follow-on capital markets.

Potential reforms could allow smaller issuers broader access to shelf registration, making it easier to raise capital efficiently without repeated lengthy registration processes.

For startups and growth-stage companies, quicker access to public capital could significantly affect financing strategy, liquidity planning, and long-term fundraising timelines.

State Competition Is Reshaping Corporate Governance

The conversation is not limited to federal securities regulation.

The article also highlights how states such as Texas and Nevada are increasingly competing with Delaware for incorporations and corporate governance leadership.

Texas, in particular, has adopted reforms designed to provide:

• Greater predictability for directors and officers

• Statutory business judgment protections

• Expanded safe harbors for conflict transactions

• Specialized business courts aimed at corporate disputes

This evolving corporate law landscape may increasingly influence where startups choose to incorporate and how boards approach governance, fiduciary duties, M&A transactions, and IPO preparation.

What This Means for Founders

The SEC’s current direction suggests a broader effort to make public markets more accessible again.

If these proposals move forward, founders may see:

• Lower public company compliance burdens

• Greater flexibility in reporting obligations

• Easier access to growth capital

• Expanded accommodations for smaller issuers

• Faster IPO pathways

• Increased strategic importance of incorporation decisions

At the same time, regulatory simplification does not eliminate legal complexity.

Disclosure obligations, fiduciary duties, governance structures, securities compliance, capitalization strategy, and investor communications remain critical — especially as companies move closer to liquidity events, public offerings, or large-scale fundraising.

Launch Legal Takeaway

The SEC appears to be signaling a meaningful recalibration of the public company model. While many of these proposals are still evolving, the direction is increasingly clear: regulators want to reduce barriers to capital formation and encourage more companies to access public markets.

For founders, emerging companies, and investors, now is the time to think strategically about:

• Corporate structure

• Governance frameworks

• Disclosure readiness

• Financing strategy

• IPO preparation

• State of incorporation decisions

Public markets may be entering a new era — and companies that prepare early will be best positioned to take advantage of it.

Learn More

SEC Small Business Formation Advisory Committee