The Securities and Exchange Commission (SEC) has formally proposed a rule change that would allow publicly traded companies to report earnings and financials only twice a year, instead of the current quarterly requirement that has been in place since the 1970s [1][2]. The new proposal would permit companies to file semiannual reports on a new form 10-S, replacing the traditional quarterly 10-Qs, while still mandating a full annual report [2].
SEC Chairman Paul Atkins stated that the rigidity of existing SEC rules has prevented companies and investors from determining the interim reporting frequency that best serves their business needs, and that the proposed amendments would provide increased regulatory flexibility [1][2]. President Donald Trump has been a vocal advocate for this change, arguing that mandatory quarterly reporting encourages a short-term mindset and distracts executives from long-term strategy. Trump stated that a semiannual system would "save money" and allow managers to focus on properly running their companies, referencing international practices and contrasting them with the U.S. approach [1][2].
The proposal is expected to spark renewed debate within Wall Street and corporate America. Critics, including Citadel founder Ken Griffin, argue that reducing the frequency of mandatory disclosures could limit transparency and accountability, potentially increasing the cost of capital and disadvantaging retail investors who rely on public filings [1][2]. Griffin emphasized the importance of quarterly reporting for market transparency and investor confidence, warning that less frequent reporting could erode these benefits [1]. Supporters, however, contend that less frequent reporting could encourage longer-term investment and strategic planning [2].
The SEC's proposal will now enter a 60-day public comment period, after which the rules can be finalized by a majority vote of the SEC [2].
CONCLUSION
The SEC's proposal to allow semiannual earnings reporting marks a significant potential shift in U.S. corporate disclosure practices, with strong support from President Trump and vocal opposition from some market participants. The outcome of the public comment period and subsequent SEC vote will determine whether this change is implemented, with major implications for market transparency and corporate strategy.