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

[Rolled newspaper with the headline Quarterly Results]
Zerbor

Former SEC Chair Gary Gensler expressed concerns about the Securities and Exchange Commission’s plan to prioritize President Trump’s push to end quarterly reports, suggesting the change could increase market volatility and reduce transparency.

During an interview with CNBC, Gensler, who served between 2021 and 2025 with President Joe Biden’s administration, emphasized that quarterly reporting has been effective for 55 years and has contributed to the strength of U.S. capital markets.

“If we go to only twice a year instead of four times a year reporting, the markets will be a bit more volatile. It will be harder to understand what’s happening in the markets,” Gensler said, pushing back against arguments that quarterly reporting prevents long-term thinking.

He acknowledged the costs associated with corporate disclosure but maintained that transparency creates “a big public good” that helps the economy function better.

Gensler rejected the notion that U.S. markets lack long-term investment focus, pointing to substantial spending on artificial intelligence by major companies.

“Look at all this spend right now, measured probably in the $200 to $300 billion a year on artificial intelligence by these big mega cap companies,” he said, adding that these investments are made with long-term horizons since they’re “not earning a bunch of profits in 2025.”

The former SEC chair also highlighted the strength of U.S. capital markets, noting they are four times larger than all of Europe’s markets combined. He expressed pride in the reforms implemented during his tenure, including shortening the settlement cycle from two days to one, while acknowledging that “elections have consequences” and his successor will naturally take different approaches.

When asked about cryptocurrency regulation, Gensler defended his enforcement actions in the space, characterizing most crypto assets as “highly speculative, very risky” investments.

“I think that for investors – everyday investors, the 5-10% of Americans who invest in crypto – most of these tokens are not tied to any fundamentals,” he said, standing by his investor protection efforts despite the crypto community’s excitement about the regulatory shift under the new administration.

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