In remarks delivered virtually to the Small Business Capital Formation Advisory Committee, U.S. Securities and Exchange Commission Chair Paul S. Atkins pointed to two near-term areas for discussion with the Committee, a regulatory framework for “finders” and frictions in the private secondary market, and linked both to his stated priority of rebuilding the initial public offering (IPO) pipeline. On finders, Atkins framed regulatory uncertainty as a deterrent to individuals acting as finders and to small businesses engaging them, particularly for capital raises below the level that typically attracts venture capital firms or registered broker-dealers. On the private secondary market, he highlighted increased liquidity needs as more firms remain private, while pointing to constraints including resale restrictions under SEC rules, issuer-imposed transfer restrictions, and the overlay of state blue sky laws, with the “manual exemption” described as costly and time consuming. He referenced the Committee’s prior recommendation to preempt state blue sky laws for off-exchange secondary trading in companies that provide robust, publicly accessible and timely disclosures such as those required by Regulation A Tier 2, and noted that investor-protection concerns could be addressed by allowing secondary trading where ongoing disclosure is provided, while also flagging that company transfer restrictions may still apply. He also reiterated his view that a more structural response is to encourage larger later-stage private companies to go public sooner, and cited a roughly 40 percent decline in the IPO pipeline in recent decades alongside priorities he described as re-anchoring disclosures in materiality, de-politicizing shareholder meetings, and creating litigation alternatives. The meeting agenda was set to build on prior discussion on finders and begin exploring the private secondary market, with Atkins indicating he would look to the Committee’s recommendations. The remarks reflected the Chair’s views and not necessarily those of the SEC or other Commissioners.
U.S. Securities & Exchange Commission 2026-02-24
U.S. Securities and Exchange Commission Chair Atkins highlights work on finder rules, private secondary markets and reviving the IPO pipeline
U.S. Securities and Exchange Commission Chair Paul S. Atkins addressed the Small Business Capital Formation Advisory Committee, highlighting regulatory uncertainty for "finders" and frictions in the private secondary market. Atkins linked these issues to his priority of rebuilding the initial public offering pipeline, citing constraints like resale restrictions and state blue sky laws. He emphasized the need for structural changes to encourage larger private companies to go public sooner.