SEC Major Reform: Proposal to Allow Listed Companies to File Financial Reports Semi-Annually, Europe and UK Already Leading the Way

The U.S. SEC is preparing major regulatory easing: allowing companies to choose to disclose financial reports every six months instead of mandatory quarterly reports, with a proposal possibly announced as early as April. This move aims to reduce compliance costs for listed companies but may also trigger investor backlash.
(Background: What is SEC’s Project Crypto trying to do, and what is Trump aiming to promote?)
(Additional context: Paul Atkins officially takes office as SEC Chair, next steps include approving ETFs for XRP, SOL, and other altcoins, and opening staking for Ethereum?)

According to foreign media citing insiders, the U.S. Securities and Exchange Commission (SEC) is preparing a significant regulatory reform: allowing publicly listed companies to choose to disclose financial results every six months instead of the mandatory quarterly disclosures. The related proposal could be officially announced as soon as next month.

This could be the most notable change in the disclosure system of the U.S. capital markets in decades since the establishment of quarterly reporting requirements.

Companies Can Still Choose to Maintain Quarterly Disclosures

It is understood that the SEC has recently been in intensive discussions with major stock exchanges about how to coordinate rule revisions if the system is adjusted. According to regulatory procedures, after the proposal is announced, there will be a public comment period of no less than 30 days. After that, the SEC will vote on the final rules. Whether the reform can be successfully implemented remains uncertain.

It is worth noting that the new regulation does not completely abolish the quarterly reporting system; companies can still choose to maintain their existing quarterly disclosure frequency. The core logic of the reform is to “lower the listing threshold”: the number of U.S. listed companies has been shrinking in recent years, and supporters believe that the cumbersome administrative compliance costs are a key reason why some companies choose not to go public or opt for privatization.

Europe and the UK Have Already Taken the Lead; Investor Protection Remains a Concern

This path has already been explored in Europe and the UK. The European Union abolished mandatory quarterly reporting requirements starting in 2013, and the UK followed suit about 10 years ago. However, many companies there still voluntarily disclose quarterly. The European experience shows that loosening regulations does not necessarily lead to a vacuum of information; market mechanisms can partially fill the gap.

However, opposition also exists. Institutional investors and retail investors heavily rely on regular financial reports for decision-making. If disclosure frequency decreases, the risk of information asymmetry increases, especially impacting small- and mid-cap stocks.

For the crypto market, this reform also has indirect implications: if compliance costs for listing are reduced, it could encourage more crypto companies to go public, and may create a more friendly regulatory environment for the ongoing tokenization of U.S. stocks.