SEC’s New Rule: Will Crypto Stocks Suffer from Less Transparency?

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SEC May Kill Quarterly Reports: How Will It Affect Crypto Stocks?

The US Securities and Exchange Commission (SEC) is considering a change that would allow public companies to report their financial results twice a year instead of every three months. Companies choosing this option would submit a new report called Form 10-S, replacing the current quarterly Form 10-Q.

Companies dealing with digital assets face a trade-off: they can save money now by not fully complying with regulations, but this could lead to problems later. Experts caution that a lack of information can make it harder to attract investors and may increase borrowing costs.

Cost Savings Versus a Liquidity Discount

Companies choosing this new reporting option would submit Form 10-S between 40 and 45 days after the end of the first six months of the year. The specific filing deadline depends on the company’s filer status. A petition to the Long-Term Stock Exchange pointed out that preparing quarterly reports can take over 1,000 hours and cost more than $100,000 each time.

The Securities and Exchange Commission (SEC) is considering a change that would let public companies choose to file reports twice a year instead of every quarter. Currently, these companies must file quarterly reports using Form 10-Q. If the change is approved, they could instead submit a new report, Form 10-S, every six months.

This explains why some smaller companies are choosing to participate. Companies like MicroStrategy and Coinbase, which hold Bitcoin as part of their treasury, face significant expenses each quarter for auditing and review processes.

In my research, I’ve come across studies showing that requiring small businesses to file quarterly reports seems to decrease their value by about 5%. This leads me to believe that companies who aren’t subject to that requirement might actually be worth more.

However, there’s a potential downside: a lack of visibility. Some investor groups are concerned that companies reporting results only twice a year might receive less attention from financial analysts and experience lower levels of stock trading.

Europe switched to reporting company results twice a year some time ago, and the consequences have included larger differences between buying and selling prices, less attention from financial analysts for medium-sized companies, and an increase in successful prosecutions for illegal insider trading. The US system of quarterly reports is actually a positive thing. While it might seem like a drawback, it primarily helps company management avoid close examination, rather than benefiting investors.

— Market Genius (@marketgeniusx) March 16, 2026

Share prices could consistently stay lower than their true value due to limited trading activity. Additionally, investors might demand higher returns from mid-sized companies, which could make it more expensive for them to borrow money and grow.

SEC Chair Paul Atkins believes markets will generally fix themselves by companies voluntarily providing more information, which aligns with his overall approach to market regulation.

Companies that are publicly traded are legally required to share important information with investors. However, strict rules from the Securities and Exchange Commission (SEC) have made it difficult for companies and investors to agree on how often to share updates, hindering their ability to tailor reporting to their specific needs, according to SEC Chair Paul Atkins.

After the official notice is published, the public will have 60 days to provide feedback on the proposed changes. A key question is whether companies voluntarily sharing information and through their regular updates will be enough to make up for the loss of required quarterly reports.

Choosing to participate offers financial benefits. Otherwise, smaller organizations trade immediate help for long-term disadvantages in how they are valued.

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Okay, so the SEC just dropped a proposal that could really shake things up for public companies. Basically, they’re suggesting companies might be able to report their results twice a year instead of every quarter. As a crypto investor, I’m paying attention because this could impact how quickly we get information about companies involved in the crypto space, and potentially reduce some of the short-term pressure on their stock prices. I’m checking out the full release to get all the details.

— U.S. Securities and Exchange Commission (@SECGov) May 5, 2026

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2026-05-05 20:27