US SEC Proposes Raising IPO Financial Audit Threshold to $2 Billion in ‘Make IPOs Great Again’ Push

The US Securities and Exchange Commission currently sets the threshold for “large accelerated filer” status at $700 million in public float. Companies that meet the threshold must comply with faster filing deadlines and the internal-control audit requirement under Section 404(b) of the Sarbanes-Oxley Act. SEC Chair Paul Atkins is seeking to reduce the cost of going public and reverse the long-term decline in the number of US-listed companies under a push to “Make IPOs Great Again.”

The SEC proposed on May 19, 2026, raising the threshold to $2 billion, calculated using average market capitalization over 10 consecutive trading days, with companies required to meet it for two consecutive years. About 81% of listed companies would qualify for streamlined disclosure requirements. Newly listed companies would be exempt from large accelerated filer status for at least 60 months. The comment period for the filer-status proposal runs through July 20.