The momentum behind the new administration’s regulatory priorities gained more steam during the third quarter. From artificial intelligence to crypto, embracing innovation and reducing regulatory friction continue to be central themes at the SEC.

Learn more about what’s happening at the SEC and how it can impact public companies below.

What’s Happening at the SEC?

The Spring 2025 Unified Agenda of Regulatory and Deregulatory Actions (Reg-Flex Agenda) was released on September 4, 2025, detailing the SEC’s rulemaking priorities. This is the first agenda released during Chairman Paul Atkins’s tenure and reflects the Commission’s renewed focus on facilitating capital formation.

A number of topics are being considering for potential rule changes that stakeholders should keep an eye on moving forward:

• Emerging Growth Company (EGC) and Filer Status. Expand EGC accommodations to include more issuers and simplify filer status categories generally to be less complex.
• Crypto Assets and Market Structure. Clarify the regulatory framework for crypto assets including new and amended rules related to the offer and sale of crypto assets, including exemptions and safe harbors.
• Disclosure Practices. Rationalize disclosure practices with focus on material disclosures, including potential changes to executive compensation disclosures.
• Exempt Offerings. Simplify the pathways for private companies to raise capital.
• Shelf Registrations. Modernize the shelf registration process to reduce compliance burdens.
• Rule 144 Safe Harbor. Expand Rule 144 safe harbor to increase instances in which it would be available.

Quarterly Reporting

In social media post on September 15, 2025, President Donald Trump expressed support for ending quarterly reporting requirements for public companies in favor of reporting earnings every six months. Later that week, Atkins said the SEC staff would explore the president’s recommendation in conjunction with other steps the Commission is taking to “make IPOs great again.” Both the president and chairman’s statements came after earlier reports that The Long Term Stock Exchange was planning to petition the SEC to reduce the frequency of quarterly reporting.  

The rationale behind moving from quarterly to semi-annual reporting is that it would enable companies to focus on long-term strategies, rather than quarterly earnings targets, and reduce the administrative costs associated with reporting so frequently. Eliminating these pain points could make being a public company more attractive, which is one of the new administration’s goals. It’s also worth noting that Trump raised this topic during his first term as president, as well.

It will be fascinating to see if the movement for semi-annual reporting gains more traction in the coming months–such a change would be a monumental shift for public companies as quarterly reporting has been required by the SEC since 1970.

International

In a speech, Atkins warned that the SEC may need to reconsider rules that allow foreign companies to prepare financial statements in accordance with International Financial Reporting Standards (IFRS) without a reconciliation to US GAAP. The Chairman indicated this reconsideration would be necessary if IFRS Foundation resources are diverted to sustainability matters at the newly created International Sustainability Standards Board (ISSB), rather than the International Accounting Standards Board (IASB). The Chairman’s remarks are consistent with the new administration’s de-prioritization of climate and sustainability matters.

Separately, the SEC announced the formation of a Cross-Border Task Force to combat securities law violations from foreign companies. The task force will specifically target gatekeepers–like auditors and underwriters–that facilitate foreign bad actors access to the US capital markets.

Leadership Changes

In September, James Moloney was named the Director of the Division of Corporation Finance. Moloney is a securities law attorney who practiced for several years at a national law firm and previously served for six years at the SEC in the late 1990s.

The SEC also launched an Artificial Intelligence Task Force to be led by Valerie Szczepanik, who was named the SEC’s Chief AI Officer. Szczepanik previously served as the Director of the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub). Like its focus on crypto, this move is another display of the Commission’s emphasis on embracing innovation.

How Do These Changes Affect Auditors?

Following former Chair Erica Williams’s resignation in July, the SEC designated George Botic to serve as Acting Chair of the Public Company Accounting Oversight Board (PCAOB) in late July. The SEC also announced that it’s soliciting new candidates for all five Board positions. This announcement wasn’t surprising as the new administration’s deregulatory philosophy stands in stark contrast with the current Board’s active approach to regulating auditors over the past few years.

Many stakeholders expect the future Board to focus on reducing unnecessary compliance costs and taking a more collaborative posture with auditors–consistent with the SEC’s priorities.

Along those lines, in late August the PCAOB postponed the effective date of QC 1000, a significant new standard that imposes specific requirements for an audit firm’s system of quality control. The new standard was supposed to be effective in December 2025, but auditors now have an additional year to comply.

What Should Public Companies Focus on Related to Financial Reporting?

Income Taxes

The FASB’s new income tax disclosure standard, ASU 2023-09, is effective for the 2025 annual financial statements of calendar year-end companies. The standard requires more disaggregated information to be included in the rate reconciliation and more jurisdictional information about income taxes paid.

Interestingly, this standard was included in recent versions of the House Appropriations Committee’s 2026 spending bill. The bill includes text that would prevent the SEC from approving the FASB’s budget until ASU 2023-09 is withdrawn.

It’s notable that Congress is attempting to influence accounting standards in this way, but not unprecedented. Stakeholders should continue to monitor the progress of the bill over the rest of the year. In the meantime, preparers should continue implementing the standard, ensuring they have access to disaggregated tax information that wasn’t required in in prior years.

Internal-Use Software

In September, the FASB issued ASU 2025-06, significantly amending the accounting for internal-use software costs. The new ASU eliminates the concept of project stages and instead requires capitalization of software costs to begin when management has both authorized and committed to funding the project, and it’s probable the project will be completed. Under the new standard, some costs that previously would have qualified for capitalization may instead be expensed.

While the new standard isn’t effective until 2027, software development companies should begin evaluating the impact of the standard on their projects now and communicate early with board members and other stakeholders on the expected impact.

We’re Here to Help

If you have questions about the changes happening at the SEC or other regulatory and financial reporting changes, contact your firm professional.

Additional Resources

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