XBRL US responds to SEC on digital standards for municipal bond reporting

Posted on October 11, 2025 by Editor

XBRL US has submitted a detailed comment letter to the US Securities and Exchange Commission (SEC) on the implementation of the Financial Data Transparency Act (FDTA), addressing concerns raised by municipal bond issuers about cost, feasibility and market readiness for digital data standards.

The letter builds on earlier comments from October 2024 and comes ahead of the SEC's expected rule proposal on municipal bond disclosures. Responding directly to scepticism from issuers, XBRL US argues that modern, structured data reporting can be achieved efficiently and affordably, while enhancing transparency and comparability in the $4 trillion municipal bond market.

Open-source tools for preparing structured reports are already available at little or no cost, while commercial options typically range from $1,000 to $1,500 per year. Legal Entity Identifiers (LEIs) cost as little as $39 annually. The letter also highlights that digital financial reporting for governments is not a new concept, with pilot projects going back over a decade and ongoing work at the University of Michigan and the Governmental Accounting Standards Board (GASB) to develop suitable machine-readable taxonomies for municipal reporting.

XBRL US reiterates that structured data standards do not alter accounting standards, but capture them in consistent, machine-readable form. The aim is a transparent, efficient reporting environment where data can be analysed automatically and compared across issuers. "Effective implementation is imperative to ensure that the Commission and municipal bond issuers recognise the benefits that the FDTA promises," writes Campbell Pryde, XBRL US President and CEO.

Read the full responsehere.