Easing the Burden: SEC and Exchange Operators Aim to Revitalize Public Listings

U.S. exchange operators are engaging in discussions with the Securities and Exchange Commission (SEC) to ease regulatory burdens for public companies. The goal is to encourage more startups to list by reducing disclosures and costs, according to sources familiar with the talks.

The discussions involve Nasdaq, the New York Stock Exchange, and the SEC, aiming to reform regulatory policies to balance capital formation with investor protection. These talks mark potentially the largest regulatory reform since the Jumpstart Our Business Startups Act of 2012 during the Obama administration and build on Trump's previous reform efforts.

Experts suggest that while reducing regulatory burdens could attract more companies to public markets, it may also come at the expense of investor protection. Despite the potential for relaxed regulations, the path for a surge in IPOs remains uncertain and depends heavily on achievable returns and valuations.

(With inputs from agencies.)