SEC preparing to scrap quarterly earnings requirement — a move Trump supports: report

• The rule change would make quarterly reporting optional rather than eliminating it entirely, giving companies the choice to report every six months instead of every 90 days
• Trump originally floated this idea during his first term, arguing it would reduce short-term thinking and cut costs for public companies
• Critics warn that less frequent disclosures could reduce market transparency and potentially increase volatility, while regulators are coordinating with major exchanges on rule adjustments

SEC Set to Propose Optional Quarterly Earnings Reporting

The Securities and Exchange Commission is preparing to release a proposal that would make quarterly earnings reporting optional for publicly traded companies, according to a Wall Street Journal report. The rule change could be published as soon as next month.

Key Details:

• The proposal would allow companies to report earnings semi-annually (every six months) instead of the current 90-day quarterly requirement
• Quarterly reporting would become optional rather than being eliminated entirely
• The SEC will vote on the proposal following a public comment period, typically lasting at least 30 days
• Regulators are currently in discussions with major exchanges regarding necessary rule adjustments

Background:

SEC Chairman Paul Atkins has supported this initiative, previously indicating the agency could release a proposal by late 2025 or early 2026. President Trump, who originally floated this concept during his first term, continues to back the change.

Rationale and Concerns:

Proponents argue that reducing reporting frequency would:

• Discourage short-term thinking among public companies
• Reduce compliance costs for businesses

Critics warn that less frequent disclosures could:

• Decrease market transparency
• Increase market volatility
• Reduce investor access to timely information

Market Implications:

This potential regulatory shift would fundamentally alter disclosure requirements for all publicly traded U.S. companies, affecting how investors receive financial information and potentially changing corporate management strategies. The change could have widespread implications for trading strategies, analyst coverage, and market efficiency.

The SEC declined to comment on the report, and Reuters could not independently verify the details.