WASHINGTON, D.C. — A bipartisan group of lawmakers introduced legislation Friday aimed at easing capital-raising restrictions for hundreds of mid-sized public companies, a move supporters say could accelerate growth, investment, and job creation across states such as Pennsylvania and Delaware.
U.S. Senators Dave McCormick and Lisa Blunt Rochester, both members of the Senate Banking, Housing, and Urban Affairs Committee, unveiled the Expanding WKSI Eligibility Act, which would broaden access to a powerful regulatory designation known as Well-Known Seasoned Issuer, or WKSI.
Under current securities law, a public company must have at least $700 million in publicly traded shares or have issued $1 billion in aggregate debt to qualify as a WKSI. That status allows companies to raise capital more quickly by filing registration statements that take effect immediately, bypassing lengthy regulatory delays. The new legislation would lower the public float threshold from $700 million to $400 million, extending the streamlined process to a significantly larger group of established companies.
Supporters argue the change would particularly benefit states with a strong base of mid-sized public firms across manufacturing, energy, healthcare, financial services, and technology. Lawmakers said Pennsylvania and Delaware are home to many such companies that already participate heavily in U.S. capital markets but fall just short of the current WKSI threshold.
McCormick said the proposal modernizes outdated rules and reflects the realities of today’s markets, allowing more companies to raise capital efficiently while maintaining investor protections. He said expanding WKSI eligibility would help firms save time and money when accessing public markets.
Blunt Rochester said responsible access to capital markets is critical to keeping the U.S. economy competitive globally. She credited the bipartisan partnership behind the bill and said the proposal would benefit both businesses and investors by improving market efficiency.
Companion legislation has been introduced in the U.S. House of Representatives by Bryan Steil and Cleo Fields, signaling bicameral support for the effort.
The full text of the legislation is available at https://www.mccormick.senate.gov/wp-content/uploads/2026/01/EHF26026.pdf.
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