In remarks at the Northwest Securities Institute, U.S. Securities and Exchange Commission Commissioner Hester M. Peirce argued that SEC rules should better support a wider range of commercially viable fundraising options for companies of different sizes, and that the market’s heavy reliance on Regulation D Rule 506(b) suggests other exemptions are comparatively costly or less workable. She also called for a fresh look at the costs of raising capital in the public markets against a backdrop of fewer initial public offerings. Peirce pointed to higher transaction costs in offerings under Rule 504, Regulation Crowdfunding, and Regulation A, and suggested lowering disclosure burdens for crowdfunding, citing the Small Business Capital Formation Advisory Committee’s recommendation to raise the offering threshold for reviewed financial statements to USD 350,000 from USD 124,000. For larger issuers using Regulation A, she proposed permitting at-the-market offerings and considering expanded federal preemption of state review. She also floated a streamlined micro-offering exemption for raises up to USD 500,000. On public markets, she noted that IPOs fell to 72 in 2024 from 134 in 2018 and urged the Commission to further scale public company reporting and disclosure obligations across issuer categories and to undertake a broader assessment of whether specific disclosure items are cost-effective.
U.S. Securities & Exchange Commission 2025-05-30
U.S. Securities and Exchange Commission Commissioner Hester Peirce urges reforms to exempt offering pathways and scaled public company disclosure
SEC Commissioner Hester M. Peirce advocated for diverse, cost-effective fundraising options, highlighting reliance on Regulation D Rule 506(b) and high costs of other exemptions. She suggested reducing disclosure burdens for crowdfunding and proposed changes to Regulation A, including at-the-market offerings and expanded federal preemption. Peirce also called for reassessing public market disclosure obligations amid declining IPO numbers.