The US SEC is considering changing rules that allow businesses to choose between quarterly and six-month revenue reports.
This follows a new call from President Donald Trump. In a post earlier this week, President Trump revived a 2018 proposal to help businesses move away from quarterly revenue disclosures in favor of a six-month schedule.
He argued that reporting every six months will reduce costs and allow management to focus more on running their business rather than achieving their short-term goals.
Talk about CNBC Scoebox Friday, Atkins It’s attracting attention He has already discussed plans with Trump and sees it as a “good way forward.”
Once approved, the rules do not require half-year reporting. Instead, businesses can choose to continue quarterly updates or switch to double the disclosure per year.
Market and investor responses shape the outcome
Additionally, Atkins said that the frequency of corporate reporting should ultimately be determined by the market in a way that benefits both shareholders and companies.
Specifically, he said that investors and banks will have a significant impact on how often a company reports based on each company’s needs and obligations.
Although there is no timeline for implementation, the SEC currently has a 3-1 Republican majority. This will provide a simple vote to proceed with your proposal.
In particular, the shift to less frequent reporting could benefit public crypto companies with large holdings, including crypto-centric companies such as Coinbase. MicroStrategyand Marathon Digital. Reduce compliance costs and reduce pressure from short-term market expectations.
Controversy over Impending Rule Changes
However, this proposal is not without controversy. Supporters argue that by relaxing reporting requirements, they will focus on free management to focus on long-term strategies, citing similar practices overseas.
Foreign private issuers in the US market already report every six months, while Norwegian sovereign wealth funds advocate the same.
However, critics argue that less frequent reports can undermine transparency, and that the disadvantaged small investors rely more on regular updates than large institutions with access to advanced research tools.
Atkins acknowledged the concern, but argued that quarterly reports are often criticized for encouraging short-term thinking.
