In a significant move that could reshape corporate governance and investor behavior, the U.S. Securities and Exchange Commission (SEC) on Thursday proposed new regulations requiring corporate insiders to disclose stock trades within 24 hours, a sharp acceleration from the current two-day window. The proposal also mandates more comprehensive reporting of derivative transactions and pre-planned trading arrangements under Rule 10b5-1. SEC Chair Gary Gensler said the new measures aim to curb abuse of insider information and restore investor confidence. “The investing public deserves timely and complete information about executives’ trades,” Gensler stated during a press briefing. “Shortening the reporting timeline and increasing transparency helps level the playing field.” The proposed changes come amid heightened scrutiny over executive stock sales, particularly in the tech sector. Several high-profile CEOs have recently come under fire for large share sales ahead of negative earnings reports or regulatory changes. Critics argue that the current disclosure timeline allows for potential manipulation and undermines market fairness. Markets responded with immediate volatility. Shares of technology and financial firms, which often see significant insider trading activity, saw declines following the announcement. The Nasdaq Composite fell 1.3% by market close Thursday, while the S&P 500 dropped 0.8%. Industry groups have expressed concern about the feasibility and cost of the new rules. The Business Roundtable issued a statement warning that the proposal could lead to unintended consequences and discourage executives from participating in equity compensation programs. “While transparency is important, overly burdensome requirements could stifle legitimate trading and reduce executive alignment with shareholder interests,” the group said. Analysts note that if implemented, the rules could impact trading volumes and volatility, particularly around earnings season when insider activity typically spikes. “This is a game-changer for how markets interpret insider signals,” said Lisa Tran, a senior equity strategist at Bernstein Research. “Faster disclosures mean quicker market reactions, which could increase short-term volatility but also improve long-term efficiency.” The SEC will open a 60-day public comment period before finalizing the rules. If adopted, the new regulations could take effect in early 2025. Investors and corporate legal teams are now watching closely, as the potential regulatory shift could significantly alter how insider trading is monitored—and punished—in the years to come.