SEC chair pushes ‘minimum dose’ of regulation, fast-tracks Trump’s reporting rollback

SEC chair Paul Atkins, appointed by President Donald Trump in the spring, announced that the agency will pursue what he described as a “minimum dose” of regulation while fast-tracking Trump’s proposal to end quarterly reporting.

Paul made the statement in an opinion article published on Monday by the Financial Times, where he said he is examining the option of letting companies report financials every six months instead of every three.

“The government should provide the minimum effective dose of regulation needed to protect investors while allowing businesses to flourish,” Paul wrote.

The move signals a direct reversal from the regulatory style of his predecessor Gary Gensler, who had built an ambitious framework during the Biden administration. Paul said the Trump administration wants a more business-friendly approach and is also seeking tighter control over federal agencies.

One of the most notable changes already underway is the SEC’s approach to crypto, which Paul has welcomed rather than challenged, in contrast with Gary’s aggressive enforcement record. The easing of rules for listed companies, he explained, is part of the same wider strategy.

Paul Atkins attacks European disclosure rules

In the same article, Paul criticized the European Union’s new Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, saying they require the release of information “that may be socially significant but are not generally financially material.”

He added that such requirements “risk imposing costs that fall on American investors and customers, while doing little to enhance the information that steers capital decisions.” Paul warned against disclosures that he said were “driven by political fads or distorted objectives.”

He said that if Europe wanted to strengthen its capital markets and attract new listings, it should look at “reducing unnecessary reporting burdens.”

He stressed that his own goal is to ensure that in the United States, the SEC keeps the focus on protecting investors instead of following what he called “ideologues.” The European Commission declined to respond immediately when asked about his comments.

Earlier this year, the SEC voted to end its defense of a climate-risk disclosure rule that Gary had promoted as a central part of his agenda. The measure, which was challenged in federal court, would have forced companies to report climate-related risks for the first time.

Paul wrote that “rules written for shareholders who seek to effect social change or have motives unrelated to maximising the financial return on their investment … fail investors.”

He added that in recent years the SEC had “drifted from the precedent and predictability that sustain [trust in capital markets] — and from the clear mandate that Congress set for the agency over 90 years ago.”

SEC prepares to end quarterly company reports

Paul also confirmed he is following Trump’s call to remove rules that force public companies in the U.S. to disclose their results every quarter. He said:

“It is time for the SEC to remove its thumb from the scales and allow the market to dictate the optimal reporting frequency based on factors such as the company’s industry, size and investor expectations.”

Investor advocacy groups have pushed back, warning that ending quarterly reporting could hurt transparency and put smaller investors at a disadvantage. They argue that such a move would damage the efficiency of the U.S. markets.

Paul responded by saying that dropping quarterly reports is not a new idea. He pointed to the UK, which switched back to semi-annual reporting in 2014, noting that some of its largest companies still chose to continue reporting quarterly.

“Giving companies the option to report semi-annually is not a retreat from transparency,” wrote Paul.