They're Opening the Stock Market to Everyone. Here's What That Actually Means

TL;DR

SEC Chair Paul Atkins and CFTC Chair Michael Selig are overhauling decades-old rules to let ordinary Americans invest in private markets previously reserved for the wealthy.

Key Points

• 1.IPO decline is real: Public companies have halved in 30 years. In the 1980s, companies like Apple and Microsoft went public at ~$400M revenue (today's dollars); now IPOs are liquidity exits for insiders, not fundraising events for the public.
• 2.SEC's "Make IPOs Great Again" plan targets three barriers: excessive compliance costs, class-action lawsuit threats, and weaponized shareholder proposals at annual meetings.
• 3.Accredited investor rules are being rewritten: Currently only ~5% of Americans can invest in private companies. Atkins confirmed a proposed rule is coming to allow a knowledge/sophistication test (like a driver's license) instead of purely wealth-based qualifications.
• 4.Venture fund access is being expanded: Current law caps fund participants at 100 investors. Atkins is working with the DOL and Treasury to open private funds and 401(k)s to retail investors, with guardrails like income-based caps.
• 5.Quarterly reporting may end: The SEC is proposing a rule change — potentially moving smaller companies to semi-annual reporting — noting the U.S. only adopted quarterly reporting in 1970; the UK already reverted to semi-annual in 2014.
• 6.SEC and CFTC are formally harmonizing: A new memorandum of understanding is being drafted to eliminate turf battles, establish substituted compliance regimes, and create a "super app" single-registration framework for cross-jurisdictional products like crypto and prediction markets.
• 7.Prediction markets are regulated but expanding: CFTC already polices insider trading in these markets — a Mr. Beast employee was fined for trading on unreleased video information. Exchanges self-certify contracts aren't manipulation-susceptible, with CFTC as backstop enforcer.
• 8.Crypto jurisdiction is being clarified: Tokenized securities fall under SEC rules; digital tokens and collectibles fall under CFTC. The CFTC Clarity Act legislation, developed with David Sachs, would give CFTC broad authority over crypto spot markets.
• 9.AI/autonomous trading agents are a new frontier: Regulators acknowledge AI hedge funds operating 24/7 across markets are unprecedented. The approach is "go build, don't ask permission" but CFTC plans to run blockchain nodes and review smart contracts as guardrails.
• 10.U.S. capital markets are the global benchmark: Atkins emphasized that foreign markets (UK, Europe, Japan) lack America's risk appetite and equity culture. The goal is to onshore the next several trillion in capital formation by reducing friction and expanding access.