• SEC Chair Paul Atkins has publicly acknowledged discussions with President Trump on moving public companies to semiannual reporting.
  • The SEC is now actively preparing proposals to reduce mandatory reporting frequency, aiming to cut compliance costs and boost IPO activity.
  • The initiative, reigniting a long-standing debate, faces potential pushback from investors who rely on quarterly data for accountability.

Securities and Exchange Commission Chair Paul Atkins confirmed on Wednesday that he has engaged in direct talks with President Trump regarding a potential seismic shift in corporate reporting requirements, moving from a quarterly to a semiannual framework. The disclosure, made during a meeting with business leaders, signals the most serious regulatory push to date on an issue that has divided corporate executives and investors for years.

According to people familiar with the matter, the SEC staff is now actively working on formal recommendations to implement the change. This effort is a cornerstone of a broader regulatory agenda aimed at reducing compliance burdens and making U.S. public markets more attractive for companies, particularly in light of stagnant IPO activity. The initiative was formally detailed in the commission's Spring 2025 Regulatory Agenda, positioning it as a key priority for the current administration.

The push was publicly set in motion on September 15th when President Trump urged the SEC to revise its rules, arguing that less frequent reporting would free management to focus on long-term strategy over short-term performance metrics. “We have talked about it,” Chair Atkins stated, confirming the high-level discussions. The agency's work on the proposals is now underway, though a timeline for a formal vote has not been set.

This is not the first time the idea has been floated. During Trump's first term, a similar effort led to a public comment period and a 2019 roundtable, though it ultimately did not result in a rule change. The concept has high-profile supporters in the corporate world, including Jamie Dimon and Warren Buffett, who have long argued that the relentless quarterly earnings cycle fosters a damaging short-term mindset.

However, the move is certain to face scrutiny. Many institutional investors and analysts vehemently oppose the change, valuing quarterly data as an essential tool for holding management accountable and making timely investment decisions. Even if the rule is changed, market pressure may compel larger firms to continue voluntary quarterly disclosures. Attempts to reach several major asset managers for immediate comment on the latest development were not immediately successful.

The proposal aligns with existing practices for foreign private issuers in the U.S., who already file reports on a semiannual basis. It would also bring the U.S. more in line with jurisdictions like the European Union, which mandates semiannual reporting. For smaller companies and potential IPO candidates, the reduced burden could be a significant incentive to enter the public markets. The SEC's broader agenda includes other measures to modernize disclosure rules and simplify processes for emerging growth companies.