2026 Regulatory Roundup: What the SEC and FASB Are Changing Next

Title: 2026 Regulatory Roundup: What the SEC and FASB Are Changing Next

Subtitle: From optional semiannual reporting to new rules on environmental credits, here's what's shifting in the compliance landscape.

Body:

The pace of regulatory change hasn't slowed down. Over the past several months, the SEC and FASB have each pushed forward proposals and finalized standards that touch nearly every public company's reporting calendar, disclosure obligations, and accounting policies. Here's a plain-language breakdown of what's moving and why it matters.

SEC: Reporting Is About to Get More Flexible

The SEC has proposed a major shift away from mandatory quarterly reporting. Under a new Form 10-S, companies could opt into semiannual reporting instead of filing Form 10-Q every quarter — filing just one semiannual report and one annual Form 10-K per year. Regulation S-X would be adjusted alongside this to simplify the financial statement requirements tied to periodic filings.

At the same time, the SEC is proposing to simplify filer categories altogether. Instead of today's multi-tiered system, companies would fall into one of two primary buckets: Large Accelerated Filers (LAFs) and Non-Accelerated Filers (NAFs), with a small-company sub-category under NAFs. The public float threshold for LAF status would jump from $700 million to $2 billion — meaning an estimated 80%+ of currently reporting companies would land in NAF status, unlocking scaled disclosure options and exemption from SOX 404(b) auditor attestation.

The SEC is also rethinking Form S-3 eligibility, shifting the primary gatekeeper from public float to exchange listing status. It's also clarifying that companies emerging from a SPAC merger won't be barred from S-3 shelf registration purely because of their prior shell-company history, as long as they're not a shell company at the time of filing.

FASB: Four New Standards to Know

FASB has finalized or advanced several Accounting Standards Updates this year:

• ASU 2026-02 (Topic 818) creates a formal framework for recognizing, measuring, and disclosing environmental credits and related compliance obligations.

• ASU 2026-01 (Topic 505) addresses inconsistent practice around paid-in-kind dividends, requiring them to be measured using the stated dividend rate in the preferred stock agreement.

• ASU 2025-06 (Topic 350) updates capitalization thresholds for internal-use software and aligns presentation with standard PP&E rules.

• ASU 2025-05 (Topic 326) introduces a practical expedient for short-term trade receivables, letting entities assume current conditions hold steady through the forecast period.

On the Horizon

A few other developments are worth watching. FASB has floated proposals on whether certain digital assets and fully liquid, fiat-backed stablecoins should qualify as cash equivalents under Topic 305. Disaggregated income tax and expense disclosures also remain a major implementation focus, with companies working through detailed footnote breakdowns of cost categories. And on the technical side, the 2026 GAAP XBRL taxonomy update adds more than 120 new elements and 90 new Data Quality Committee validation rules aimed at reducing filing errors.

The Bottom Line

Whether it's more flexible reporting cadences, a simpler filer framework, or new accounting frameworks for emerging asset classes, the throughline is the same: regulators are trying to reduce friction for companies while keeping investors informed. Staying ahead of these changes — rather than reacting to them — is the difference between a smooth transition and a scramble.

Sources: U.S. Securities and Exchange Commission (SEC); Financial Accounting Standards Board (FASB).