Cooperate with Trump with all his strength! New US SEC Chairman supports "deregulation": After cryptocurrency, "semi-annual reports are allowed to replace quarterly reports"

# From Embracing Cryptocurrencies to Scrapping Quarterly Reports: The SEC’s Regulatory Tide Undergoes a Major Shift  

By Long Yue  

Source: Wall Street CN  

The U.S. Securities and Exchange Commission (SEC) is undergoing a significant shift in its regulatory stance—from embracing cryptocurrencies to eliminating quarterly reporting requirements.  

According to a September 29 report by the *Financial Times*, Paul Atkins, the newly appointed SEC Chair, stated that the SEC will consider allowing public companies to adopt semi-annual reporting in place of the current requirement to release earnings every three months. He emphasized the need for "minimum effective dose" regulation.  

"The government should provide the minimum 'dose' of regulation needed to protect investors, while allowing businesses to thrive," Atkins said.  

"It is time for the SEC to remove its influence and let the market determine the optimal reporting frequency based on factors such as a company’s industry, size, and investor expectations," he added.  

Atkins’ move directly echoes former President Trump’s earlier proposal to relax financial reporting frequency, aiming to provide greater flexibility for businesses. It also represents the latest example of the Trump administration’s pro-business stance and its efforts to exert greater control over independent federal agencies. This marks a complete break from the broad and stringent regulatory agenda pursued by Gary Gensler, Atkins’ predecessor as SEC Chair.  

Prior to this, the SEC had already shifted its approach to cryptocurrencies—from the aggressive crackdowns of the Gensler era to a more moderate and accepting stance. The relaxation of disclosure rules for public companies now confirms that this "light-touch" regulatory philosophy will be fully implemented across the board.  

## "Minimum-Dose" Regulatory Philosophy: Considering the Abolition of Mandatory Quarterly Reports  

Shortly after taking office, Atkins quickly set the tone for the SEC under his leadership. He argued that in recent years, the SEC has "strayed from precedents and predictability [in maintaining trust in capital markets]" and deviated from the clear mission Congress assigned to the agency over 90 years ago.  

This statement is widely seen as a direct criticism of his predecessor Gensler’s aggressive regulatory and enforcement stance during the Biden administration.  

Relaxing the frequency of corporate financial disclosures is the most high-profile part of Atkins’ "deregulatory" agenda. He has actively echoed Trump’s call to repeal the rule that requires most U.S. public companies to disclose their financial conditions every three months.  

"It is time for the SEC to take its thumb off the scale and let the market decide the optimal reporting frequency based on factors such as a company’s industry, size, and investor expectations," Atkins emphasized.  

He argued that the goal of regulation should be to protect investors and enable business prosperity—not to cater to shareholders "seeking to drive social change or whose motives are unrelated to maximizing financial returns on investments."  

Atkins maintained that abandoning mandatory quarterly reports is not a novel idea, nor "a step backward in transparency." He pointed out that such flexibility has already been granted to certain enterprises.  

Citing the United Kingdom as an example, he noted that after the country reinstated semi-annual reporting in 2014, some large companies still chose to continue releasing quarterly reports out of 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 and Opposing "Political Fads"  

Atkins’ regulatory blueprint is not limited to the United States. He also sharply criticized Europe’s regulatory model, describing its climate-related rules as being driven by "theorists" and warning against letting "political fads or distorted goals" dictate disclosure requirements.  

He specifically singled out the European Union’s recently adopted *Corporate Sustainability Reporting Directive (CSRD)* and *Corporate Sustainability Due Diligence Directive (CSDDD)* for criticism. He argued that these directives force companies to disclose matters that "may be socially relevant but are often not financially material."  

"These mandatory requirements risk passing costs on to U.S. investors and customers, while adding little to the information that guides capital decisions," Atkins warned.  

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.  

## Investors Worry About Diminished Transparency  

However, this major policy shift by the SEC has also sparked concerns in the market. Investor advocacy groups have issued warnings, according to reports.  

These groups argue that shifting from quarterly to semi-annual reporting could weaken market transparency and harm the interests of small investors, who have relatively limited access to information.  

They worry that, in the long run, this move may undermine the foundation that supports the efficient operation of U.S. capital markets. While Atkins believes the market can self-regulate, opponents insist that mandatory, more frequent disclosures are key to maintaining market fairness and efficiency.  

【Disclaimer】The market is subject to risks, and investment requires caution. This article does not constitute investment advice. Users should consider whether any opinion, view, or conclusion in this article is consistent with their specific circumstances. Any investment made based on this article shall be at the investor’s own risk.