The U.S. Securities and Exchange Commission proposed a rule change Monday that would allow newly public companies to raise cash instantly after listing — the largest overhaul of public listing rules in more than two decades. The proposal, if adopted, would cut compliance costs for companies and give crypto firms a much easier path to raise capital on Wall Street.
What the rule would do
Under current rules, companies that go public through an initial public offering or direct listing face a waiting period before they can tap the markets for additional funding. The SEC’s proposal would eliminate that delay, letting issuers sell new shares immediately after their stock begins trading. The change is designed to make capital-raising faster and cheaper, especially for smaller or high-growth firms that often struggle with the costs of traditional follow-on offerings.
The crypto industry has long complained that existing listing rules are too rigid and expensive. Many blockchain startups have avoided U.S. public markets altogether, opting for private fundraising or offshore listings. The SEC’s proposal directly addresses that friction. By slashing compliance hurdles, the rule would make it feasible for more crypto-native companies to go public and then quickly raise additional capital to fund operations, acquisitions, or product development.
Who pushed for the change
The SEC has been under pressure from both industry lobbyists and some lawmakers to modernize capital-market rules for the digital-asset era. The proposal was approved by a 3-2 vote along party lines, with Republican commissioners in favor and Democrats opposed. SEC Chair Mark Uyeda said the rule would “remove unnecessary friction from the capital-raising process” and help “emerging growth companies — including those in the digital-asset space — access the funding they need to compete.” The dissenting commissioners argued the change could open the door to abuse by companies that aren’t ready for public scrutiny.
What happens next
The proposal now enters a 90-day public comment period before a final vote. If enacted, the rule would take effect later in 2026. The SEC is also expected to issue additional guidance on how crypto firms can qualify for the streamlined process, including whether token-based offerings would be eligible. Industry groups say they’ll push for that clarity during the comment period.
