SEC proposes overhaul of public company reporting

Posted on May 29, 2026 by Editor

Earlier this month the US Securities and Exchange Commission (SEC) put forward proposals to consolidate the current multi-tiered filer status system into two categories: large accelerated filers (LAFs) and non-accelerated filers (NAFs). This would eliminate the accelerated filer and smaller reporting company categories, while extending disclosure accommodations currently used by smaller companies to approximately 81% of all public companies. New public companies would enjoy these accommodations for a minimum of five years, and the threshold for LAF status would rise from $700 million to $2 billion in public float.

While the proposal does not include a change to existing reporting requirements, the question is posed as to whether the smallest NAFs-SNFs, reporting total assets of $35 million or less-should be exempt from XBRL filing in some or all Exchange Act reports.

The proposals sit alongside a separate SEC initiative on optional semi-annual reporting, forming a deregulatory push under SEC Chair Paul Atkins' stated goal to "Make IPOs Great Again."

The case for reducing disclosure obligations rests on compliance burden, but those burdens are falling rapidly as AI-assisted drafting, automated data aggregation and modern reporting platforms mature. At a moment when investor demand for comparable, machine-readable data is rising, and when AI-driven analytical tools depend on high-quality structured disclosures to function effectively, extending lighter-touch reporting to the vast majority of public companies gives us pause. Fewer companies classified as large accelerated filers means fewer companies subject to the most stringent structured data filing requirements. Maintaining the world's largest and (currently) most modern capital market on thinner disclosure foundations seems a curious ambition.

The comment period is open for 60 days.

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