The U.S. government is once again at odds with regulators. This time, the pressure is coming from the Department of Government Efficiency (DOGE), which is pushing to ease rules on Special Purpose Acquisition Companies (SPACs) – shell companies created solely to acquire a private company and take it public.
🔄 What Are SPACs and Why Are Regulators Concerned?
SPACs are publicly traded "blank check" companies that raise funds to acquire private firms, effectively allowing those companies to enter public markets without a traditional IPO. This shortcut has drawn criticism in the past – high-profile examples like Lucid Motors, DraftKings, and Trump’s social media venture sparked backlash over their lack of transparency and lighter regulatory oversight.
Under President Biden, the SEC tightened scrutiny of SPACs. But now, Trump and DOGE are advocating for looser regulations.
🏛️ DOGE Wants Freer Markets
According to multiple sources, internal meetings have recently taken place between DOGE officials and SEC staff, where they discussed reversing some Biden-era rules for SPACs and reducing disclosure obligations for private investment funds.
In a February executive order, Trump instructed federal agencies to identify rules that impose excessive costs on businesses and hinder economic growth. The broader goal: reduce government oversight and stimulate the economy through deregulation.
⚖️ SEC’s Independence Under Pressure
Not everyone is on board. Sources say some SEC officials are uneasy with the White House’s growing influence over what has traditionally been an independent regulatory agency. Critics argue that rulemaking should be based on technical expertise, not political agendas.
Amanda Fischer, policy director at Better Markets and former aide to SEC Chair Gary Gensler, said that DOGE’s involvement is deeply concerning. She warned that political influence could override expert judgment and compromise investor protection.
🧾 Trump’s Agenda: Savings, Efficiency, Less Oversight
White House spokesperson Taylor Rogers defended the collaboration, saying it aims to make markets more efficient while better protecting retail investors. She emphasized that the Trump administration wants the U.S. to remain the best and safest place in the world to invest and do business.
SEC Chair Paul Atkins claimed DOGE-led reforms have already resulted in $90 million in cost savings for the agency. He also noted that recent staff departures were voluntary, with some retiring or moving to other government roles under the Trump administration.
🧨 Internal Split Within the SEC
The debate isn’t limited to outside influence. Within the SEC itself, opinions are divided on how tight regulations should be. Republican commissioners Mary Uyeda and Hester Peirce have criticized current rules as overly burdensome, especially those affecting SPACs and private funds.
They also opposed eliminating the so-called “safe harbor” provision, which protected SPAC sponsors from legal liability tied to overly optimistic or misleading financial projections.
#DOGE , #SEC , #crypto , #Regulation , #USPolitics
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