SEC Chairman Shares Concerns Over Fewer Public Companies with House Committee

In his first hearing before the House Financial Services Committee since he took the helm of the SEC, Jay Clayton (SEC Chairman) discussed the troubling trend of fewer public companies.

Clayton said that “without IPOs of growing companies, we have a shrinking and generally more mature portfolio of public companies. This is a significant concern. A shrinking proportion of public companies, particularly smaller and medium-sized companies, has costs beyond investment choices, including that there will be less publicly available information about the operations and performance of companies that are important to our economy.”

According to Clayton, the scaled disclosure and regulatory requirements of the JOBS Act “provides incentives for companies to conduct public offerings while maintaining the world’s most robust investor protections.”

Clayton also discussed expanding the definition of Accredited Investors and the SEC’s approach to initial coin offerings (or ICOs).

 

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