In the ever-tumultuous world of U.S. politics and business regulation, President Donald Trump dropped a proposal yesterday, that’s got everyone from Wall Street execs to everyday investors buzzing.
Posting on his platform Truth Social, Trump called for the Securities and Exchange Commission (SEC) to scrap the long-standing requirement for public companies to file financial reports every quarter, replacing it with a bi-annual (every six months) schedule.
He framed it as a way to «save money, and allow managers to focus on properly running their companies,» even invoking a comparison to China’s supposed «50 to 100 year view» on business management versus America’s quarterly grind . (Quick fact-check: China actually requires quarterly reports too, if not more stringently.)
Now, let’s be clear: while I disagree with many of Trump’s actions or decisions—from trade wars to environmental rollbacks—I find this decision, if carried forward, an excellent idea. It’s a pragmatic step toward easing unnecessary burdens on businesses and fostering longer-term thinking, something that’s been debated for years and could genuinely benefit the economy.
To understand why, a bit of background: Since 1970, under the Securities Exchange Act of 1934, U.S. public companies have been mandated to submit quarterly reports (known as 10-Qs) with unaudited financials, providing a «continuing view» of their health . These are filed for the first three quarters, topped off with a full annual 10-K .
The goal? Transparency for shareholders and markets, as the SEC puts it, to keep everyone informed in a timely way . But Trump isn’t alone in questioning this; during his first term, he floated the same idea, though it didn’t stick . Recently, the Long-Term Stock Exchange petitioned the SEC for a similar shift, arguing that quarterly pressures stifle innovation and long-range planning . Even heavyweights like Warren Buffett and JPMorgan’s Jamie Dimon have criticized the short-term focus it encourages .
The implications here are fascinating—and mostly positive, in my view.
On the upside, moving to semi-annual reporting could slash costs and administrative headaches for companies . Imagine executives spending less time obsessing over hitting quarterly targets and more on strategic growth. Supporters say this might reverse the decline in U.S. public listings by making it less daunting to go public . It would also align us closer to practices in the European Union and UK, where mandatory quarterly reporting was phased out to promote longer-term horizons . A 2018 study on the UK’s switch found nuanced results: It didn’t eliminate short-termism entirely, but it didn’t plunge markets into darkness either . In essence, this could unlock economic growth by letting businesses breathe, as Trump argues, and fits his administration’s deregulation push .
Of course, there are downsides worth acknowledging. Critics, including the CFA Institute, warn that less frequent reports could erode transparency, leaving investors without timely updates on risks or performance shifts . One executive summed it up on social media: It might be «great for long-term company builders, but terrible for public market investors who need timely data» . There’s a risk of increased volatility if markets get blindsided by six-month gaps, and insiders might gain an unfair edge over outsiders. Analysts estimate a 60% chance of this happening under SEC Chair Paul Atkins, but it’d take at least six months to propose, with potential pushback from investor groups .
All that said, the potential benefits outweigh the risks for me. In a world where companies are often punished for missing a single quarter’s earnings whisper, this change could encourage sustainable strategies over quick wins. It’s not a panacea—earnings management won’t vanish overnight—but it’s a step toward a healthier corporate ecosystem. If the SEC greenlights it (and Trump is the majority shareholder in Truth Social, a public company that could benefit ), we might see more innovative, resilient businesses emerge.
What do you think? Could this be the deregulation we actually need? Drop your thoughts in the comments—I’m curious if this rare Trump idea resonates beyond the usual divides.
El Mundo del Trading en los Mercados Financieros 