(August 5, 2026) WASHINGTON – The Small Public Company Coalition (SPCC) filed a petition for review on SR-NASDAQ-2026-004, the Securities & Exchange Commission-approved rule to automatically delist companies that fall below $5 million market value listed securities. An automatic stay was triggered on July 29 when the SPCC filed its notice of intent to petition.
The membership of the SPCC, which includes small public companies, investors, investment bankers, law firms, accountants, and other vendors in the small and microcap community, argued in comments throughout the rulemaking process that this rule would effectively bankrupt hundreds of small American businesses, many of them biotech and emerging growth companies.
SPCC President Marc Indeglia issued the following statement: “As Commissioner Atkins has noted, small companies power entrepreneurial innovation, create jobs, and drive economic growth. Capital formation is the mechanism that fuels all of it. We continue to believe that the rule would severely impact small businesses, impair capital formation, and create perverse incentives for short-selling and coordinated pressure on smaller companies.”