Fully support Trump! The new chairman of the U.S. SEC advocates for "deregulation": After cryptocurrencies, allowing "semi-annual reports to replace quarterly reports"

From embracing cryptocurrencies to canceling quarterly reports, the regulatory direction of the U.S. Securities and Exchange Commission (SEC) is undergoing significant changes.

According to the Financial Times on September 29, newly appointed SEC Chairman Paul Atkins stated that the SEC will consider allowing publicly listed companies to adopt semi-annual reports instead of the current requirement to release performance reports every three months, emphasizing "minimum effective dose" regulation.

The government should provide the "minimum effective dose" of regulation needed to protect investors while allowing businesses to thrive.

It is now time for the SEC to remove its influence and let the market determine the best reporting frequency based on factors such as company industry, size, and investor expectations.

Paul Atkins' move directly echoes Trump's previous proposal to relax the frequency of financial reporting, aiming to provide greater flexibility for businesses. This is yet another example of the Trump administration's pro-business stance and its efforts to exert greater control over independent federal agencies. It marks a complete break from the broad and stringent regulatory agenda pursued by former Chairman Gary Gensler.

Previously, the SEC's attitude towards cryptocurrencies had shifted from the aggressive crackdown during Gensler's tenure to a more moderate acceptance, and this relaxation of disclosure rules for publicly listed companies confirms that this "light-touch" regulatory approach will be fully implemented.

"Minimum Dose" Regulatory Philosophy, Considering the Abolition of Mandatory Quarterly Reports

After taking office, Paul Atkins quickly set the tone for the SEC under his leadership. He believes that in recent years, the SEC has "departed from the precedent and predictability necessary to maintain trust in the capital markets," and has strayed from the clear mission set for the agency by Congress over 90 years ago.

These remarks are seen as a direct criticism of his predecessor Gensler's aggressive regulatory and enforcement stance under the Biden administration.

Relaxing the frequency of corporate financial disclosures is the most notable part of Atkins' "deregulation" agenda. He actively responded to Trump's call to abolish the requirement for most U.S. publicly listed companies to disclose their financial status every three months.

Atkins stated, "It is time for the SEC to take its thumb off the scale and let the market determine the best reporting frequency based on factors such as company industry, size, and investor expectations."

He argued that the goal of regulation is to protect investors and allow business to prosper, rather than to satisfy those shareholders "seeking to achieve social change or whose motives are unrelated to maximizing financial returns."

Atkins believes that abandoning mandatory quarterly reports is not a novel idea and is "not a regression in transparency." He pointed out that this flexibility has already been granted to certain companies.

He cited the example of the UK, where after reinstating the semi-annual reporting system in 2014, some large companies continued to choose to release quarterly reports based on their own needs. In his view, this proves that the market can effectively determine the frequency and depth of information disclosure.

Criticism of the European Model, Opposition to "Political Trends"

Atkins' regulatory blueprint is not limited to the United States. He sharply criticized the European regulatory model, stating that its climate-related regulations are driven by "theorists," and warned against allowing "political currents or distorted goals" to drive information disclosure.

He specifically criticized the EU's recently passed Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD). He believes these directives require companies to disclose matters that "may have social significance but generally lack financial importance."

Atkins warned, "These mandatory requirements may shift costs onto American investors and customers, while providing almost no gain in information that guides capital decisions."

He stated that if Europe wants to promote its capital markets by attracting more listings and investments, it should focus on reducing unnecessary reporting burdens.

Investor Concerns Over Transparency Loss

However, this significant policy shift by the SEC has also raised concerns in the market. According to reports, investor advocacy groups have issued warnings about this.

These groups believe that the shift from quarterly to semi-annual reporting may weaken market transparency and harm the interests of smaller investors, who have relatively limited access to information.

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