Fmr. SEC chair Gensler: Markets will be more volatile if companies only report earnings twice a year

Core Viewpoint - The SEC is prioritizing President Trump's proposal to reduce the frequency of corporate reporting from quarterly to biannual, which may lead to increased market volatility and reduced transparency [1][2][3]. Group 1: Corporate Reporting - The SEC's potential shift to biannual reporting is seen as a move that could make markets more volatile and harder to understand, as transparency is crucial for market stability [2][3]. - The current system of quarterly reporting has been in place for 55 years and is believed to support long-term investing, which is essential for the health of the economy [3][4]. - Corporate executives argue that the burden of paperwork and frequent disclosures may deter companies from going public, particularly smaller firms [6][7]. Group 2: Market Dynamics - There is a lively competition between public and private markets, with the U.S. capital markets being significantly larger than those in Europe, with liquid equity markets valued at approximately $60 to $70 trillion [10]. - The concentration of market capitalization among a few stocks, such as Nvidia, raises concerns, as these stocks represent a significant portion of indices like the S&P 500 [11]. - Investment in artificial intelligence (AI) is substantial, with estimates suggesting that it accounts for about half of the economic growth in the first half of the year, despite many companies not yet turning profits [13][14]. Group 3: Regulatory Environment - The current SEC under Chair Paul Atkins is reversing many reforms implemented by the previous administration, leading to a different approach towards issues like crypto regulation [15][16]. - The SEC's focus on investor protection remains critical, especially in the context of the speculative nature of many cryptocurrencies, which are often not tied to fundamental values [19][20].