Atkins Proposes Big Cuts to Fund, Crypto and IPO Rules

Securities and Exchange Commission Chair Paul S. Atkins used a keynote at The Economic Club of Washington to outline regulatory changes he plans after one year leading the agency. He proposed raising private fund reporting thresholds, clarifying the legal status of most digital tokens, and creating an IPO reporting on‑ramp.

On private funds, the SEC and the Commodity Futures Trading Commission advanced a joint proposal to raise the Form PF filing trigger from $150 million to $1 billion in private fund assets under management. The proposal would also raise the threshold that defines a “large” hedge fund adviser from $1.5 billion to $10 billion. Regulators say the higher thresholds would remove filing obligations for many smaller advisers while continuing to capture data on more than 90% of private fund gross assets. Form PF collects confidential adviser information used by regulators to monitor systemic risk.

Atkins presented a five‑category taxonomy for digital tokens aimed at clarifying which assets fall under SEC jurisdiction. The framework would classify Digital Commodities, Collectibles (including meme coins), Tools and Stablecoins as non‑securities, while Digital Securities would remain subject to SEC oversight. The agency described an “innovation exemption” that could allow firms to trade tokenized equities and bonds on blockchain platforms for a 12‑ to 36‑month window without full registration, provided firms work toward compliance during that period. Atkins noted a memorandum of understanding with the CFTC signed last month to align definitions and reduce gaps in oversight.

To address the drop in U.S. exchange listings, Atkins proposed an IPO “on‑ramp” that would give many public companies the option to move from quarterly to semiannual reporting or reduce reporting frequency while transitioning. He cited the decline in listings since 1994, when more than 7,800 companies were listed on U.S. exchanges, and summarized the goal with the phrase ‘Make IPOs Great Again.’

Atkins framed the agency’s agenda around an Advance‑Clarify‑Transform strategy and told attendees he measures success by how many rules the SEC removes rather than adds. He said the commission will aim to provide the “minimum dose of regulation” needed for markets to function and highlighted actions already taken to reduce compliance costs and adjust adviser reporting obligations.

The proposals remain subject to public comment and further rulemaking. The Form PF threshold change, the token taxonomy, the innovation exemption and the IPO reporting options all require formal proposals or guidance before any regulatory relief takes effect. The SEC described the measures as efforts to narrow mandatory reporting, coordinate oversight with the CFTC and reduce compliance burdens while preserving data needed to monitor market stability.