• The SEC is proposing that companies report earnings twice a year instead of four times.
• A proposed rule released Tuesday would cut the number of mandatory reports.
• It's the latest step toward enacting a proposal that Donald Trump suggested last year.

The Securities and Exchange Commission is taking a major step toward allowing companies to report earnings twice a year.

A new proposed rule from the SEC would cut the required reporting obligations for public companies from the current four times a year, according to a statement that the regulator issued Tuesday.

Under the proposal, companies could file one semiannual report and one annual report.

"Public companies have an obligation under the federal securities laws to provide information that is material to investors," SEC Chairman Paul Atkins said.

"Yet, the rigidity of the SEC's rules has prevented companies and their investors from determining for themselves the interim reporting frequency that best serves their business needs and investors," Atkins added.

The SEC's proposal comes after President Donald Trump advocated for twice-a-year earnings reports.

This is a developing story. Check back for more details.