Regulators moved Tuesday to ease listing requirements, proposing a five-year grace period from strict disclosure rules for large new public companies. The plan, led by Chairman Paul Atkins, aims to revive the U.S. IPO market by letting firms like SpaceX avoid 'large accelerated filer' mandates initially.

Under the proposal, the public float threshold for that category would jump to $2 billion from $700 million. Companies below that level could use scaled-down disclosures previously reserved for very small issuers, potentially avoiding shareholder votes on executive pay.

A separate measure would modernize shelf registrations, potentially increasing eligible issuers by over 60%. The changes, part of an effort to make going public more attractive, now enter a 60-day public comment period before the divided commission can finalize them.