SEC Plans Rule Change in Response to Trump’s Call for Ending Quarterly Earnings Reports

• SEC Chairman Paul Atkins announced on September 19, 2025, his agency’s intent to propose a rule change allowing publicly traded companies to optionally switch from quarterly to semiannual earnings reports, in response to President Trump’s recent call for the adjustment to boost efficiency and long-term focus.
• The proposed flexibility would enable companies to determine their reporting cadence based on market preferences, noting that foreign private issuers already follow semiannual schedules and supporters like Norway’s sovereign wealth fund advocate for reduced short-term pressures.
• While proponents highlight benefits for business operations, opponents raise concerns over diminished transparency for retail investors, with the SEC’s current 3-1 Republican majority poised to potentially approve the change through a majority vote.

In a move that could reshape corporate disclosure practices, U.S. Securities and Exchange Commission Chairman Paul Atkins has signaled support for revising rules to allow publicly traded companies the option to report earnings semiannually instead of quarterly. This development aligns with President Donald Trump’s recent advocacy for such a shift, emphasizing potential benefits for business efficiency and long-term focus. Atkins, appearing on CNBC’s “Squawk Box,” expressed enthusiasm for the president’s suggestion, noting that he had discussed the matter directly with Trump and views proposing a rule change as a constructive step forward.

Under existing SEC regulations, companies must file earnings reports every quarter, although forward-looking guidance remains optional. If approved, the new rule would empower individual firms to choose their reporting frequency, letting market dynamics determine the most suitable approach for shareholders and operations. Atkins highlighted that this flexibility could mitigate the pressures of short-term thinking often associated with quarterly cycles, a concern echoed in broader discussions within financial circles over recent years.

Proponents of semiannual reporting argue that it would enable executives to prioritize sustained growth over immediate results, potentially reducing administrative burdens and fostering innovation. Trump has framed the change as a cost-saving measure that allows managers to concentrate on core business strategies. Notably, foreign private issuers already operate under a semiannual framework within U.S. markets, demonstrating that less frequent reporting is feasible without disrupting investor access to information. Additionally, initiatives like Norway’s sovereign wealth fund have endorsed similar adjustments earlier this year, citing advantages in encouraging long-term corporate planning, while platforms such as the Long-Term Stock Exchange have voiced support for easing quarterly mandates.

However, the proposal has sparked significant debate, with critics warning that reduced reporting intervals could erode transparency, particularly disadvantaging retail investors who lack the sophisticated tools available to institutional players on Wall Street. Atkins acknowledged these ongoing conversations, stressing that any rule amendment would proceed through standard SEC processes, requiring only a majority vote. Currently, Republicans maintain a 3-1 majority on the commission, with one seat vacant, positioning the agency to potentially advance the change efficiently.

This initiative reflects evolving perspectives on regulatory frameworks in global finance, where balancing investor protection with operational agility remains a key challenge. By allowing companies to opt into semiannual schedules, the SEC aims to adapt to diverse market needs while preserving essential oversight mechanisms.

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