The U.S. Securities and Exchange Commission (SEC) is considering a game-changing reform for the U.S. capital markets, proposing to reset the frequency of financial reporting based on company size, ending the more than 50-year-old tradition of mandatory quarterly reporting. According to market sources, the regulator is actively evaluating changes to financial reporting requirements, planning to make mandatory quarterly reporting optional, allowing companies to choose to release earnings reports every six months. This proposal could be announced as early as next month. This reform is not unfounded; it directly responds to the Trump administration's previous call to change the frequency of corporate financial reporting from quarterly to semi-annual. Atkins believes that the quarterly reporting system forces companies to focus excessively on short-term performance, which is detrimental to long-term strategic planning. Changing the reporting frequency to semi-annually will allow companies (especially small and medium-sized enterprises) to focus more on long-term development. Specifically, the core of the reform is to reduce the burden on companies. By adjusting the reporting cycle, it will save companies significant time and costs, allowing management to be freed from cumbersome compliance documentation and devote more energy to long-term business planning. However, policy implementation will still take time. According to procedure, the SEC must first submit a draft plan to the White House for review before it can be released to the public for comment. Based on historical data, the average cycle for the SEC to formulate rules is approximately 18 months. This means that even if everything goes smoothly, the new rules will not take effect until the second half of 2027. However, opinions on this are divided. Supporters believe that this will help curb the market's "short-termism" tendency and alleviate the continuous decline in the number of listed companies; but opponents worry that reducing disclosure frequency will weaken market transparency, lead to information asymmetry, and ultimately harm investors' interests. Overall, finding a balance between reducing the burden on companies and ensuring investors' right to know will be key to the successful implementation of this plan. #SEC #CorporateFinancialReportDisclosureFrequency