SEC to reduce Wall Street transparency as public blockchains are gaining an institutional foothold

The Securities and Exchange Commission (SEC) is reportedly preparing to propose a change that would make quarterly financial reporting optional for public companies, allowing them to file updates only twice a year. Supporters argue this would reduce short-term focus and costs, while critics warn it could diminish transparency and widen the information gap between corporate insiders and other investors. Currently, public companies provide annual, quarterly, and event-driven disclosures. The proposed change would eliminate the standardized, scheduled quarterly reports. Proponents believe this would encourage long-term investment and align the US with markets like Europe and the UK, which have already reduced reporting requirements. Opponents argue that voluntary disclosure isn't equivalent to mandatory disclosure and could disadvantage retail investors who rely on regular updates. The debate highlights a broader shift towards a more issuer-friendly regulatory climate in Washington, questioning the necessity of stringent investor protections.

(Source：CryptoSlate)