Hester Peirce, SEC Commissioner, has raised concerns that burdensome disclosure requirements may be discouraging companies from going public and the proposed exemption aims to support innovation while revisiting such regulatory barriers

Quotes that support claims

We need to take a look at these requirements and ask whether some of them are extraneous, or even harmful.

Commissioner Hester Peirce emphasized the need for "sensible regulation" to maintain U.S. capital markets’ global competitiveness, citing a 20-year decline in public company listings as a motivator for revisiting disclosure requirements.

we are reflecting on why the number of public companies listed on exchanges in the U.S. fell from 5,243 in 2004 to 4,862 in 2024.