Washington, D.C. — The U.S. Securities and Exchange Commission (SEC) on Thursday proposed sweeping reforms to crack down on insider trading in a move that could reshape how executives and corporate insiders buy and sell company stock. The proposed rules aim to close loopholes in current regulations and introduce new disclosure requirements for trades made by senior officials. Under the new proposal, executives would be required to provide advance notice—potentially as long as 45 days—before executing trades under pre-scheduled trading plans, known as Rule 10b5-1 plans. These plans have long been criticized for allowing insiders to trade on non-public information while remaining technically compliant with existing rules. SEC Chair Gary Gensler stated, “We must ensure that our markets operate on a level playing field. These reforms will strengthen public confidence by enhancing transparency and accountability.” The announcement arrives amid a busy corporate earnings season, with several high-profile companies reporting better-than-expected results. Tech giants such as Alphabet and Microsoft have posted strong quarterly earnings, lifting investor sentiment. However, the SEC’s move has introduced a note of caution, especially for firms with large insider ownership. Market analysts say the proposed regulations could have a chilling effect on insider transactions, potentially reducing volatility around earnings announcements. "If adopted, these rules will significantly change the timing and frequency of insider sales, which could influence stock price dynamics," said Laura Chen, a senior analyst at Goldman Sachs. The proposed changes are subject to a 60-day public comment period before they can be finalized. In the meantime, investors are closely watching how companies may alter their executive compensation and trading strategies in anticipation of tighter scrutiny. In addition to insider trading reforms, the SEC is also considering enhanced disclosure rules related to environmental, social, and governance (ESG) practices, which could further impact investor behavior and corporate valuations across sectors. Wall Street responded with mixed reactions. The S&P 500 closed slightly lower on Thursday, while the Nasdaq edged higher, buoyed by tech earnings. Financial and energy stocks underperformed amid uncertainty over regulatory impacts. With regulatory momentum building in Washington, analysts expect increased compliance costs for corporations, but also greater investor trust in the long term. As one hedge fund manager put it, “This is a wake-up call for corporate America. Transparency is no longer optional.”