The U.S. SEC is considering a rule change that would allow companies to choose between quarterly and semiannual earnings reports.
This follows renewed calls from President Donald Trump. In a post earlier this week, President Trump revived his 2018 suggestion that companies move away from quarterly earnings disclosures in favor of a semiannual schedule.
He argued that reporting every six months would reduce costs and allow executives to focus more on running their businesses rather than meeting short-term targets.
SEC Chairman Supports Proposal for Rule Change
SEC Chairman Paul Atkins welcomed the idea, saying his agency will propose a rule change to accommodate it.
Speaking on CNBC’s Squawk Box on Friday, Atkins noted that he has already discussed the plan with Trump and sees it as a “good way forward.”
Once approved, the rule would not mandate semiannual reporting. Instead, companies would be able to choose whether to continue with quarterly updates or switch to twice-yearly disclosures.
Market and Investor Reactions Will Shape the Outcome
Furthermore, Atkins said the frequency of corporate reporting should ultimately be determined by the market, in a way that benefits both shareholders and companies.
Specifically, he stated that investors and banks will largely influence how often companies report, based on each company’s needs and obligations.
While no timeline for implementation has been set, the SEC currently has a 3–1 Republican majority. This makes a simple vote sufficient to advance the proposal.
Notably, a shift to less frequent reporting could benefit public crypto companies with large holdings, including crypto-focused ones like Coinbase, MicroStrategy, and Marathon Digital. It would lower compliance costs and reduce pressure from short-term market expectations.
Controversy Over Impending Rule Change
However, the proposal is not without controversy. Supporters argue that easing reporting requirements would free management to focus on long-term strategy, citing similar practices abroad.
Foreign private issuers in U.S. markets already report on a semiannual basis, and Norway’s sovereign wealth fund has advocated for the same.
However, critics argue that less frequent reporting could hurt transparency and disadvantage small investors, who rely more on regular updates than large institutions with access to advanced research tools.
Atkins acknowledged this concern but argued that quarterly reporting has often been blamed for encouraging short-term thinking.
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