Wall Street’s top watchdog has proposed scrapping mandatory quarterly reporting for U.S.-listed companies, a move that could tilt power toward CEOs. The SEC introduced a rule that would let firms file earnings semi‑annually instead of quarterly under federal securities law today.

Chair Paul Atkins said companies owe investors material information, but rigid rules have stifled choice in reporting cadence. He argued flexibility would let businesses and investors decide the frequency that best serves their needs and reduces short‑term decision pressure for better alignment and long‑term outlook.

The proposal mirrors practices in many other countries, where semi‑annual reporting is standard. Advocates claim it would curb short‑termism and lower compliance costs, while critics warn it could erode transparency and give executives more leeway to hide performance swings and mislead investors over the next quarter.

If adopted, the change would grant companies regulatory flexibility and potentially lower reporting costs, but it would also shift the balance of information disclosure. Investors will need to reassess how they gauge corporate performance without quarterly updates for accurate valuation and risk assessment and strategic planning.