Investing.com -- The Securities and Exchange Commission is preparing a proposal to shift the cadence of corporate disclosures from four times a year to just two. According to reporting from The Wall Street Journal, the regulator may publish the plan as soon as next month to give public companies the option to bypass quarterly reporting.

The proposal follows a growing chorus of support from President Trump and SEC Chairman Paul Atkins, who argue that the current mandate is overly burdensome. Supporters believe moving to a semiannual schedule could help reverse the trend of a shrinking U.S. public market by reducing clerical costs.

In preparation for the release, regulators have been consulting with major stock exchanges to determine how listing rules might need to be adjusted. While the shift would end the mandatory nature of the 50-year-old requirement, it is expected to make quarterly updates optional rather than eliminating them entirely.

The push gained significant momentum late last year after the Long-Term Stock Exchange petitioned the SEC for a change in disclosure frequency. Although Trump explored a similar move during his first term, the current effort marks a more formal step toward a semiannual standard.

Any finalized rule change will still face a mandatory public comment period of at least 30 days followed by an official commission vote. There are no guarantees the measure will pass, especially as many institutional investors rely heavily on frequent transparency to value their holdings.

Critics of the plan point to potential volatility, yet proponents highlight that European and U.K. markets have already successfully relaxed similar reporting mandates. While many overseas firms still choose to report quarterly, the legal requirement to do so ended over a decade ago.