In May 2026, Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), officially put forward what is described as the largest IPO system reform in nearly two decades. He touted it under the banner of “Make IPOs Great Again.” Beyond lowering the threshold for companies to go public, the core goal is also to expand retail investors’ participation rights in new share offerings and improve their access to those offerings.

The reform measures mainly include: (1) significantly simplifying the listing path—proposing an “IPO Light” streamlined registration channel and shortening the S-1 review/waiting period, reducing underwriting costs so brokers will be more willing to open subscription entry points to retail investors; (2) expanding the scope of “Testing-the-Waters,” allowing companies to present valuation information to retail brokers ahead of the official roadshow, thereby improving individual investors’ right to price-relevant information; (3) loosening restrictions on Shelf Registration—removing the $75 million threshold for market value in circulation and the one-year reporting-period requirement, so that more high-growth small- and mid-cap new issues can enter the pool of retail broker distribution; and (4) exploring ways to encourage underwriters to increase the proportion of retail allocations, changing the previous convention in which more than 90% of IPO shares were allocated to institutional buyers, so that ordinary investors can share IPO subscription gains more fairly.

Atkins emphasized that the reform will be implemented in layers based on the principle of “proportional regulation” and will not weaken efforts to combat fraud. Supporters believe this will revive the stagnant U.S. IPO market and narrow the “primary market gap” between retail and institutional investors. Consumer protection groups, however, worry that reduced information disclosure could increase investment risks for retail investors. The proposal is currently in a 60-day public comment period and will take effect only after the SEC commissioners vote.