The SEC wants to make it easier for startups to go public

The head of the U.S. Securities and Exchange Commission wants more young companies to sell shares to the public. SEC Chair Paul Atkins says he wants to cut the regulatory burden that keeps startups out of public markets. According to Inc., Texas and its emerging financial hub could serve as a blueprint.

What this is about

"Going public" means selling shares of a company to everyday investors on a stock exchange. It can raise money and give a business more visibility. It also comes with a lot of rules and paperwork. Those rules are what Atkins is targeting. The SEC is the federal agency that oversees U.S. stock markets and sets many of those requirements.

Why Texas comes up

Inc. reports that Texas and its growing financial hub could provide a model for the changes. The material available does not say what Texas does differently, or which parts of its approach the SEC might copy.

Who it could touch

If the rules ease, more young companies could offer shares to everyday investors. Business owners may also find going public a more realistic option than it is today. Everyday investors could see more small and young companies available to buy.

What is not known yet

• Which specific rules the SEC plans to change
• When any changes might take effect
• How much cost or paperwork would actually be cut
• Whether Texas's approach would be copied in full or in part

For now, this is a stated goal from the SEC's chair, not a finished rule. Owners thinking about going public should watch for formal proposals before changing any plans.