Trump Reboots Semi-Annual Reporting Idea: Will US Stocks Benefit or Face Risks?
Washington – 2025: President Donald Trump has once again raised a controversial point of view: changing the financial reporting regulations of US businesses from quarterly to semi-annual. This is not the first time Mr. Trump has mentioned this issue – he also proposed a similar idea in 2018, but now the market context and political pressure have made this topic “hot” again.
Trump’s argument: Reduce costs, focus on the long term
Trump believes that US businesses are “constrained” by the dense reporting rhythm of 90 days/time, forcing CEOs to chase short-term results to please Wall Street. Reducing the reporting frequency will:
Help companies save on auditing and disclosure costs.
Create space for leadership to focus on long-term strategy.
Bringing the US closer to the UK and Europe, where most companies report only twice a year.
The downside: Less transparency, more volatility
However, many investors have expressed concerns. Reducing the frequency of data disclosure could lead to:
Lower transparency, creating loopholes for delaying or hiding bad news.
Increased stock price volatility, as rare results every 6 months will have greater weight on the market.
Losing Wall Street's competitive advantage: Currently, high valuations of US stocks are partly due to superior transparency compared to other markets.
Balance of interests - who wins, who loses?
Businesses: will be the direct beneficiaries thanks to reduced pressure and costs.
Institutional investors: can adapt quickly, using alternative data (conferences, investor days, special reports) to fill the gap.
Retail investors: may suffer due to less access to authoritative information, forced to rely on secondary analysis.
Enforceability and timing
According to Wolfe Research, the probability of the change being implemented exceeds 50%, but the rulemaking and public comment process at the SEC could drag on until 2026 or beyond. If Trump continues to exert political pressure, the SEC will find it difficult to ignore the proposal.
Long-term outlook
If the semi-annual reporting scenario materializes, Wall Street will enter a period of “rebalancing” – where information is scarce but announcements become more influential than ever. Investors could see an environment that:
Less short-term turbulence.
But more volatility when important information is released.
📌 Conclusion: Trump’s idea could be a major turning point for US stocks. This helps companies feel less “suffocated” by short-term reporting, but also poses challenges to transparency and investor confidence. The question remains whether the market will accept less information in exchange for a longer-term focus – or see it as a step back in corporate governance standards?