The U.S Sec Chair Fast Tracks Trump's Push to End Quarterly Earnings Reports

A significant change could be coming to how U.S. companies report earnings. Paul Atkins, chair of the U.S. markets watchdog, said Monday that the Securities and Exchange Commission (SEC) is accelerating President Donald Trump’s long-standing call to eliminate quarterly earnings reports. If adopted, the new rule would require public companies to release financial results twice a year rather than every 90 days.

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Atkins told reporters that the regulator could unveil a formal proposal by the end of 2025 or in early 2026. While the SEC explored the idea back in 2018—when it invited public feedback the effort ultimately stalled, leaving the current quarterly reporting regime intact.

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“The president’s call was timely, and so we are working to fast track it,” Atkins explained at SEC headquarters during a joint policy roundtable with the Commodity Futures Trading Commission. “I’m hopeful we’ll have a proposal out by late this year or early next year, followed by a comment period to hear from market participants.”

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The idea of moving away from quarterly earnings reports isn’t new. Trump first floated the change in 2018, arguing that fewer reporting obligations would lower compliance costs for businesses and help management focus on long-term growth rather than short-term market expectations.

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At the time, the SEC labeled the proposal a priority but stopped short of making any revisions. Now, however, the agency seems more aligned with the White House’s agenda, which could give the initiative a stronger chance of success. Still, Atkins avoided committing to a specific timeline for when new rules might take effect.

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Supporters vs. Critics

The proposal has sparked mixed reactions across Wall Street. Supporters agree with Trump’s argument, saying semi-annual reporting would reduce the administrative burden on corporations and encourage executives to prioritize strategy over meeting quarterly earnings targets. They see it as a way to curb the pressure of short-termism, which many argue distorts decision-making.

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But critics warn that scaling back disclosures could backfire. Investors and transparency advocates say less frequent updates would erode accountability, give companies more leeway to withhold bad news, and potentially heighten market volatility.

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Many also argue that one reason U.S. equities trade at a premium compared to global peers is precisely because of the country’s robust disclosure standards. Diluting that advantage, they caution, could make U.S. markets less attractive to international investors.

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“Delaying financial reporting risks weakening transparency, which is one of the pillars of investor confidence,” one market analyst noted. “While companies may save on costs, investors may pay the price in terms of greater uncertainty.”

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Quarterly reporting wasn’t always the norm. Until 1970, U.S.-listed firms were only required to disclose financial performance on a semi-annual basis. The SEC introduced the quarterly system to strengthen oversight and standardize disclosures across corporate America. Since then, the practice has been credited with enhancing transparency and contributing to the perception of U.S. markets as among the most reliable and well-regulated in the world.

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That long history is one reason many investors are reluctant to embrace change. “Investors value predictability,” another market strategist explained. “When companies provide consistent quarterly updates, it reduces the information gap and levels the playing field.”

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While Atkins’ comments suggest momentum behind Trump’s plan, the rule change is far from guaranteed. The SEC must first draft a formal proposal, followed by a public comment period where market participants can weigh in. Any final rule would likely face scrutiny from lawmakers, industry groups, and investors alike.

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Still, the agency’s stronger alignment with the administration marks a shift from previous years, raising the odds of at least a serious debate on the future of corporate reporting standards.

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Atkins himself signaled the importance of moving swiftly. Earlier Monday, he outlined his position in an editorial published in the Financial Times, reinforcing the sense that the SEC is preparing to put the issue back on the table in the near term.

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For now, investors and executives alike will be watching closely. A move from quarterly to semi-annual reporting could reshape not only how companies communicate with shareholders, but also how markets price risk and reward. Whether the change boosts long-term thinking or undermines transparency remains at the heart of the debate.

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