The SEC is proposing a major rule change that would enable newly public companies to raise funds instantly after listing.

The U.S. Securities and Exchange Commission (SEC) has unveiled its most significant overhaul of public listing regulations in over two decades, aiming to cut compliance costs and make it easier for newly public companies — including crypto firms — to access capital markets.

The proposed changes would modernize IPO rules and ongoing reporting requirements, giving companies more flexibility to raise funds both at the time of listing and after going public. SEC officials said the initiative is intended to address a long-term decline in the number of listed firms by reducing regulatory complexity and improving market efficiency.

Over the past 18 months, several crypto-linked companies including BitGo (BTGO), Circle (CRCL), and Bullish (BLSH) have gone public, while others such as Securitize and Kraken have either explored IPO plans or discussed potential listings. The SEC’s new framework could reduce both the cost and operational friction of these transactions, particularly for mid-sized crypto firms navigating the demands of public markets.

A key feature of the proposal is the immediate availability of “shelf registrations” after an IPO. This would allow companies to pre-register securities and issue shares quickly when market conditions are favorable. Under current rules, firms must typically wait about a year before using this mechanism. The SEC also proposes removing the $75 million public float requirement tied to unrestricted shelf offerings.

For crypto businesses operating in highly volatile conditions, this flexibility could provide a meaningful advantage. A firm like Securitize, focused on tokenized securities infrastructure and often viewed as a potential IPO candidate, could more easily return to markets for additional funding shortly after listing if investor demand improves.

The proposal would also broaden access to regulatory relief currently reserved for the largest public companies. Today, only about 36% of listed firms qualify, but the SEC estimates the changes would extend these benefits to roughly 75% of issuers. These include simplified registration processes, more flexible communications during offerings, and expanded access to broker-dealer research coverage.

Another major revision would increase the threshold for “large accelerated filer” status from $700 million to $2 billion in public float. Companies below this level would remain under lighter reporting and audit obligations for longer periods after going public. The SEC also proposes requiring firms to exceed the threshold for two consecutive years before being moved into stricter compliance categories.

Officials said the current system can force companies into higher-cost reporting requirements due to temporary fluctuations in market value. The updated rules aim to create a more stable and predictable framework for determining regulatory status.

Although the proposal is not specifically aimed at crypto companies, it reflects a broader shift in the SEC’s approach toward encouraging capital formation and strengthening U.S. public markets after years of tighter enforcement-driven oversight.

The proposal will now undergo a 60-day public comment period before any final decision is made.