For years, US-based crypto companies have largely avoided the public markets. High compliance costs and regulatory uncertainty made listing on Nasdaq or the NYSE impractical for most. That may soon change.
The Securities and Exchange Commission is proposing its broadest overhaul of public listing rules in more than two decades, according to a May 19 report. The plan would cut compliance costs and simplify the process for newly public companies to raise cash almost instantly. For an industry that still relies mainly on private token sales, venture rounds, and offshore structures, the change could alter how companies raise capital.
The rule change is not aimed specifically at digital asset firms. It would apply broadly to all companies that have recently gone public, but crypto startups could benefit more than most. Under current rules, newly public companies must complete a lengthy roadshow and file additional regulatory documents before selling more shares. The proposed reform would let them access equity markets with less friction and turn a public listing into an ongoing source of capital.
The Crypto-Specific Impact
Crypto exchanges, bitcoin miners, and token-issuing platforms have traditionally favored private funding because compliance costs erased the advantages of going public. Coinbase’s 2021 direct listing was a rare exception, and it still required years of legal preparation. Under the new SEC framework, a Layer 1 blockchain foundation or a DeFi protocol treasury could more realistically consider a US listing to fund development, acquire companies, or provide liquidity to early backers.
Many of these projects, including those that consistently rank among the top blockchains by developer activity, have decades-long roadmaps that require sustained funding. Public markets could provide that capital.
The timing matters. Over the past year, the SEC has signaled a broader deregulatory shift under new leadership, even as other agencies continue to debate crypto legislation. The proposal comes as Wall Street banks push to kill a landmark crypto bill just days before a Senate vote.
The divide between the SEC’s capital markets division and the banking lobby’s effort to protect traditional business models shows how unsettled crypto policy remains. The industry is still operating in a politically divided environment.
Currently, a newly public company may have to wait months before selling more shares. The SEC’s proposal would remove that waiting period and reduce the required documentation, allowing fresh IPOs to issue additional stock within days.
For a crypto firm that needs to act quickly — for example, to take advantage of a mining profitability spike or fund an acquisition during a market rally — that speed could turn a public listing from a one-time event into an active treasury management tool.
Convergence with Real-World Assets and Tokenization
The SEC’s effort to modernize equity listing rules also overlaps with the growth of tokenized traditional financial assets. On-chain US Treasuries, money market funds, and private credit have already surpassed $20 billion, as documented in BlockchainReporter’s Weekly Tokenization Roundup.
If a crypto company can issue equity on a US exchange nearly as easily as it can launch a token, the distance between traditional capital markets and decentralized finance becomes smaller. Institutional investors that have remained on the sidelines may find this combined exposure easier to access.
For example, a tokenization platform that bundles real-world assets could go public, raise money from equity investors, and use that capital to expand its on-chain protocols. The connection would make the boundary between regulated securities and programmable assets less distinct, potentially speeding the move toward a hybrid financial system.
It would also mean that the same regulatory body shaping equity markets is indirectly influencing the infrastructure used by tokenized assets.
What’s Still Missing
Despite these advantages, the SEC’s proposal does not answer the central question of how most crypto tokens should be classified. A company with a utility token trading on secondary markets could still face the risk that the SEC later declares the token an unregistered security.
The listing overhaul would make it easier to raise capital, but it would not remove the compliance risks tied to existing token structures. As a result, only some crypto firms — those with clear legal opinions or those prepared to restructure — would benefit immediately.
The proposal must also pass through the public comment period and could face challenges from market participants who benefit from the current system. Banks and institutional investors that have built profitable advisory businesses around the existing IPO process may oppose changes that reduce their fees.
At the same time, the Commodity Futures Trading Commission and Congress remain deadlocked over broader market structure legislation. The result is a fragmented regulatory environment.
Market observers will track how large crypto firms, from established exchanges to DeFi unicorns, respond to the final rule. If the SEC follows through, the US could regain its position as a preferred jurisdiction for digital asset companies seeking deep, liquid public markets.
After years of capital and talent moving to more accommodating offshore hubs, that would represent a significant reversal.
