SEC Chair Backs Lighter Rules, Eyes End of Quarterly Reporting

U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has pledged to scale back financial regulation. Also, fast-track President Donald Trump proposal to end quarterly corporate reporting. Writing in the Financial Times, Atkins argued that government oversight should deliver only the “minimum effective dose” needed to protect investors. While giving businesses more freedom to grow.

The move signals a sweeping departure from the regulatory path set under former chair Gary Gensler. He emphasized aggressive enforcement and broader disclosure mandates. By contrast, SEC Chair Atkins is positioning the SEC as a pro-market regulator. He promised fewer restrictions and less frequent reporting obligations for listed companies.

Push to Scrap Quarterly Reports

Currently, U.S. public companies must file financial statements every 90 days. Trump and his allies have long argued that the system fosters “short-termism.” It forces executives to focus on quarterly results at the expense of long term strategy. Atkins echoed that concern, writing that markets should determine the best reporting frequency based on industry, size and investor expectations. If adopted, the SEC could shift to a semi-annual reporting model similar to the U.K. Where regulators dropped mandatory quarterly reports in 2014. 

SEC Chair Atkins noted that many British companies still choose to report every three months. This suggests flexibility does not automatically reduce transparency. Still, investor advocates warn that rolling back the rule risks undermining capital market efficiency. They argue that quarterly filings are essential for protecting smaller investors. It ensures accountability and reduces information gaps between insiders and the public.

Regulatory Reset Under Trump

SEC Chair Atkins’ stance reflects the Trump administrations broader effort to loosen financial rules and assert more control over independent agencies. The SEC has already pulled back from defending a Biden-era rule requiring companies to disclose climate risks. A signature initiative under Gensler that faced legal challenges. In his op-ed, Atkins criticized Europes new sustainability directives. Which mandate disclosures on environmental and social impacts. He argued these rules focus on “political fads” rather than material financial information. 

Adding that such mandates impose unnecessary costs on investors and businesses. The remarks show the SECs shift away from progressive regulation. And toward a narrower focus on investor returns. The lighter touch approach also extends to digital assets. Unlike Gensler, who pursued high-profile enforcement actions against crypto firms. SEC Chair Atkins has signaled openness to the sector. Observers say this marks one of the sharpest course reversals for the agency in recent decades.

Debate Over Market Impact

Supporters of the changes contend that reducing regulatory burdens will attract more listings to U.S. markets. It allows firms to prioritize long term investment over quarterly performance. They argue that lighter reporting could also make the U.S. more competitive globally. Particularly as Europe continues to expand its compliance obligations. But Critics caution that less frequent reporting may harm transparency. It reduces trust among retail investors. Advocacy groups fear it could widen the gap between insiders and ordinary shareholders. 

While creating new risks in capital markets that rely on consistent disclosure. The debate is far from settled. While SEC Chair Atkins is committed to implementing Trump agenda. He must balance industry demands for flexibility with investor calls for accountability. Whether semi annual reporting becomes the new norm will depend on how far the SEC is willing to push deregulation. Without sparking backlash from Congress, investors and the public.

Outlook for U.S. Companies

For corporate America, the prospect of lighter regulation could reshape the rhythm of financial disclosure. Companies may gain breathing room to focus on strategy. Rather than quarterly targets. But they also face pressure to maintain investor trust through voluntary reporting. If SEC Chair Atkins delivers on his promise, the SECs approach could redefine how U.S. markets balance oversight. 

The shift would represent not just a policy change. But a philosophical reset: moving from regulation as guardrail to regulation as minimal guidance. Whether that balance strengthens or weakens the market remains the central question. One that will shape U.S. financial policy well beyond Trump’s term.