Trump Wants to Change “Quarterly Reports” to “Semi-Annual Reports”? SEC Responds: Prioritizing Processing

Following US President Trump’s renewed intervention in the long-standing debate over transparency in American capital markets, Wall Street’s primary regulatory body has stated it is “prioritizing” his latest proposal: US companies should no longer be mandated to disclose financial reports quarterly but instead every six months.  

 

The US Securities and Exchange Commission (SEC) said in a statement that it is seeking a proposal to “further eliminate unnecessary regulatory burdens on companies.” Previously, SEC Chairman Paul Atkins has frequently criticized the current disclosure regime, arguing that the heavy reporting requirements provide little significant benefit to shareholders.  

 

Earlier on Monday, Trump posted on social media, “Pending SEC approval, companies and businesses should no longer be forced to release quarterly reports; switching to semi-annual reports will save costs and allow management to focus more on company operations.”  

 

 

Nasdaq Chairman and CEO Adena Friedman released a statement on LinkedIn, expressing support for reforms aimed at reducing the burden on listed companies, including allowing firms to choose between quarterly or semi-annual reporting.  

 

Nasdaq proposed in an earlier policy paper this year that companies be allowed to opt for semi-annual reporting.  

 

The SEC’s requirement for quarterly reports, introduced in 1970, was part of decades-long efforts to enhance transparency following the 1929 stock market crash. For investors and executives, reforming quarterly reports could reshape the incentive structure of the world’s largest stock market—determining whether US companies remain bound by time constraints or gain more freedom to focus on long-term goals.  

 

Supporters of quarterly reports argue that they are necessary to keep investors informed and reduce the potential for market manipulation. They also note that shifting to semi-annual reporting could increase uncertainty and volatility in earnings results.  

 

Nell Minow, Chairman of ValueEdge Advisors, which advises institutional investors on corporate governance issues, called abandoning quarterly reports “a massive step backward.” She said the strength of the US market stems from this transparency, which builds trust.  

 

Brian Nick, Portfolio Strategy Chief at Newedge Wealth, stated, “While the goal is to encourage investors and companies to focus on the long term, this will increase market uncertainty and could lead to valuation declines. The swings during earnings season could also be larger, as losses become bigger and consequences more severe.”  

 

Of course, experts supporting Trump argue that quarterly reporting has its drawbacks. They point out that it increases costs, forces companies to prioritize short-term gains—hindering investment and innovation—and may lead to overreactions from investors.  

 

Matt Powell, a senior advisor at BCE Consulting, said, “Companies spend too much time on quarterly reports. On the other hand, you need to balance this because investors deserve enough good information to make informed decisions.”  

 

Whether Trump’s intervention will trigger significant regulatory changes remains to be seen, but his remarks have injected new political momentum into a debate over how the US measures corporate performance.

 

In fact, during his first term, Trump explored eliminating quarterly reports. He said at the time that he had consulted with several top business leaders, believing it would help companies pursue longer-term strategic planning. In 2018, he even requested regulators to study the idea, but it ultimately went nowhere.