In a bold move aimed at restoring investor confidence, the U.S. Securities and Exchange Commission (SEC) unveiled a comprehensive set of regulations on Thursday designed to clamp down on insider trading. The initiative, called the Fair Access and Transparency Enforcement (FATE) framework, introduces stricter disclosure requirements and harsher penalties for corporate executives found guilty of trading on material non-public information. The new rules require executives to disclose any planned stock sales at least 90 days in advance, up from the current 30-day requirement under Rule 10b5-1 trading plans. Additionally, companies must now report insider transactions within 24 hours, rather than the previous two business days. The SEC also indicated it would increase the frequency of random audits targeting trading activities around earnings announcements and major corporate events. "We are sending a clear message: the era of opaque insider dealings is over," said SEC Chair Gary Gensler during a press conference. "Fair markets are the foundation of our economy, and these reforms will help ensure that all investors, big and small, are playing on a level field." Investors reacted quickly to the announcement. The S&P 500 fell 1.2% in afternoon trading, while the tech-heavy Nasdaq Composite slid 1.8%. Shares of major financial institutions, including JPMorgan Chase and Goldman Sachs, experienced notable volatility, as analysts speculated that increased compliance costs and potential legal risks could weigh on future earnings. "This is a significant regulatory shift that could materially impact insider behavior and corporate governance practices," said Samantha Lee, a senior analyst at Everbright Securities. "While the long-term effect may be positive for market integrity, the near-term uncertainty is leading to heightened sell-offs, particularly in sectors where insider trading has been a persistent concern." The new regulations are expected to take effect in the fourth quarter, pending a 60-day public comment period. Market participants will be closely watching for additional guidance from the SEC and potential legal challenges from corporate lobbying groups. Meanwhile, some lawmakers praised the SEC’s move. Senator Elizabeth Warren (D-MA) called the crackdown "a necessary step toward protecting hardworking American investors from rigged markets." However, critics, including some Republican members of Congress, warned that overly aggressive regulation could stifle legitimate business activities and innovation. With earnings season around the corner, companies are scrambling to review internal compliance protocols to ensure alignment with the incoming rules. Analysts predict that the full market impact will unfold over the coming months as firms adapt to the new regulatory landscape.