• SEC Chair Paul Atkins confirms the agency is drafting a formal proposal to shift public companies from quarterly to semiannual financial reporting.
  • The move, now a top SEC priority, follows a direct push from President Trump, who argued the change would reduce compliance burdens and curb corporate short-termism.
  • The initiative is part of a broader deregulatory agenda aimed at making US capital markets more attractive for listings and IPOs.

SEC Chair Paul Atkins has publicly confirmed that the agency’s staff is actively developing a proposal to shift US public companies to a semiannual reporting schedule, a significant regulatory overhaul that gained immediate momentum following discussions with President Trump.

The development, which Atkins detailed on September 17, 2025, comes just two days after the President took to social media to explicitly advocate for the change. Trump’s post argued that reducing the frequency of mandatory earnings reports would free corporate managers from short-term pressures and significantly lower compliance costs, allowing them to focus on long-term growth strategies.

“This is now a top priority for the commission,” a person familiar with the internal deliberations said, noting that staff across multiple divisions have been tasked with drafting the necessary rulemaking. The proposal is a cornerstone of a broader initiative to streamline disclosure requirements and reduce regulatory burdens viewed as offering minimal investor protection.

The potential shift represents the most significant change to US reporting requirements in over half a century. Public companies have been mandated to file quarterly Form 10-Qs since 1970, a system designed to ensure market transparency and protect investors in the wake of the 1929 stock market crash. A formal change would require a notice of proposed rulemaking, a public comment period, and a final vote by the SEC commissioners.

Proponents, including many in the business community, contend that the current quarterly cycle fosters a damaging “short-termism” that forces executives to manage to Wall Street’s expectations every three months rather than investing in sustainable, long-term projects. They also point to the European Union, where semiannual reporting is more common, as a model.

However, the move is already reigniting fierce debate. Investor advocates and some governance experts warn that reducing reporting frequency would severely hamper market transparency and erode investor trust. “This could be a gigantic step backward,” said one prominent corporate governance advisor, who asked not to be named due to the sensitivity of the ongoing regulatory process. “Timely information is the lifeblood of efficient markets. Reducing its flow only increases risk and the potential for unpleasant surprises.”

The SEC did not immediately respond to a request for further comment on the timeline for the proposal's release. Market participants are now bracing for a heated lobbying battle, with industry groups and institutional investors likely to weigh in heavily during the public comment period.