Fully cooperating with Trump! The new chairman of the US SEC strongly supports “deregulation”: After cryptocurrencies, allowing “semi-annual reports to replace quarterly reports”

From embracing cryptocurrency to ending quarterly reporting, the regulatory direction of the U.S. Securities and Exchange Commission (SEC) is undergoing major changes.

According to a September 29 report by the Financial Times, newly appointed SEC Chairman Paul Atkins stated that the SEC will consider allowing listed companies to release semiannual reports instead of the current requirement to report earnings every three months, emphasizing a "minimum effective dose" of regulation.

The government should provide the “minimum effective dose” of regulation needed to protect investors, while allowing businesses to flourish.

It is now time for the SEC to remove its influence and let the market decide the best reporting frequency based on factors such as industry, company size, and investor expectations.

Paul Atkins’s move directly echoes Trump’s previous proposal to loosen the frequency of financial reporting, aiming to give companies greater flexibility. This represents the latest example of the Trump administration’s pro-business stance and its efforts to exert greater control over independent federal agencies. It marks a complete break from the broad and stringent regulatory agenda pursued by former SEC Chairman Gary Gensler.

Previously, the SEC's approach to cryptocurrencies had shifted from Gensler's aggressive crackdown to a more moderate acceptance, and this easing of disclosure rules for listed companies confirms that this “light-touch” regulatory philosophy will be fully implemented.

"Minimum Dose" Regulatory Philosophy, Considering Scrapping Mandatory Quarterly Reporting

After taking office, Paul Atkins swiftly set the tone for the SEC under his leadership. He believes that in recent years the SEC has “deviated from the precedents and predictability that maintain (capital market trust),” and from the clear mission laid out by Congress over 90 years ago when the agency was founded.

His remarks are seen as a direct criticism of his predecessor Gensler's aggressive regulatory and enforcement stance under the Biden administration.

Relaxing the financial reporting frequency for companies is the most eye-catching part of Atkins' “deregulatory” agenda. He endorsed Trump’s call to scrap the rule requiring most U.S. listed companies to disclose their financial status every three months.

Atkins stated: “Now is the time for the SEC to take its thumb off the scales and let the market determine the best reporting frequency based on factors such as company industry, size, and investor expectations.”

He advocates that the goal of regulation is to protect investors and allow businesses to prosper, not to serve shareholders “seeking to achieve social change or whose motives have nothing to do with maximizing investment returns.”

Atkins believes that abandoning mandatory quarterly reporting is not a novel idea, nor “a setback in transparency.” He notes that such flexibility has already been granted to some companies.

He cited the example of the UK, where after returning to a semiannual reporting system in 2014, some large companies have chosen to continue releasing quarterly reports based on their own needs. In his view, this proves that the market itself can effectively determine the frequency and depth of information disclosure.

Criticizing the European Model, Opposing “Political Currents”

Atkins’ regulatory blueprint is not limited to the U.S. He also sharply criticized the European regulatory model, saying its climate-related rules are driven by "theorists," and warned against letting "political currents or distorted goals" drive disclosures.

He specifically named and criticized the EU’s recently adopted Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). He believes these directives require companies to disclose matters "that may have social significance but usually lack financial materiality."

Atkins warned: “These mandatory requirements may pass on costs to American investors and clients, yet provide almost no useful information to guide capital decisions.”

He bluntly stated that if Europe wants to boost its capital markets by attracting more listings and investments, it should focus on reducing unnecessary reporting burdens.

Investor Concerns Over Damaged Transparency

However, this major policy shift by the SEC has also led to concerns in the market. According to reports, investor advocacy groups have issued warnings about it.

These groups believe that switching from quarterly to semiannual reporting may weaken market transparency and harm the interests of smaller investors, who generally have limited access to information.

They worry that in the long run, this move could undermine the foundations that support the efficient operation of America’s capital markets. Although Atkins believes the market can self-regulate, opponents insist that mandatory, more frequent disclosures are key to maintaining market fairness and efficiency.

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