The US Securities and Exchange Commission (SEC) is preparing a proposal that could significantly reshape corporate reporting in the United States.
The regulator plans to eliminate the long-standing requirement for companies to report earnings every quarter, allowing firms to disclose results only twice a year.
If adopted, the change would mark one of the most significant reporting reforms in decades. The proposal is expected to be formally published in April.
The move could reduce regulatory costs and encourage more companies to list on public markets. Compliance with quarterly reporting requirements costs corporations billions of dollars each year.
Regulators and business groups also say the shift could help executives focus on long-term strategy rather than short-term earnings targets.
However, there are potential risks to this regulation. Less frequent reporting may weaken transparency. Retail investors and analysts rely heavily on quarterly disclosures to track corporate performance and detect financial risks.
Also, the proposal could have broader implications beyond equities. Reduced reporting frequency may increase uncertainty around company fundamentals, potentially adding volatility to stock markets.
At the same time, any policy that reshapes capital markets can influence investor risk appetite.
Major shifts in equity market transparency and liquidity often spill into digital asset markets such as Bitcoin and Ethereum.
For now, the proposal remains under review, and it is unclear whether the SEC will finalize the rule change later this year.
