DOGE officials are now targeting SEC SPAC rules as part of President Trump’s Department of Government Efficiency initiative, which is pushing the Securities and Exchange Commission to loosen various Wall Street regulations. The White House influence on SEC policy extends to changes affecting Special Purpose Acquisition Companies and also private fund reporting requirements, marking a significant shift in Trump’s deregulation efforts taking place right now.
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Trump Deregulation Push Targets SPAC Rules, SEC Policy & Private Fund Reporting
DOGE Officials Target Key Regulations
DOGE officials who have been positioned within the SEC have intensified their efforts to examine rules around SPACs and also private fund reporting requirements. These officials, who initially focused on cost-cutting measures, are now targeting specific Biden-era rules that strengthened oversight of blank-check companies and also private investment funds.
DOGE officials are examining regulatory changes that include modifications to SPAC rules that the SEC adopted last year and also requirements that private investment advisers provide confidential data disclosures. According to two people familiar with the matter, DOGE officials at the SEC have sought meetings with staff to explore relaxing what some companies have described as burdensome and also unnecessary regulations.
Political Tensions Over SEC Independence
The involvement of DOGE in shaping SEC policy has created tension within the agency, with some officials expressing concerns about the appropriateness of White House influence in regulatory decisions. The SEC has traditionally maintained independence from direct political interference, operating under decades-established norms that limit White House communications regarding rule-making processes.
Amanda Fischer, policy director and chief operating officer at financial reform advocacy group Better Markets, stated:
“It’s outrageous that outside designees to the agency, who presumably were not selected by the chair, would have a say in rulemaking activities.”
SPAC Market Impact and Also Response
The review of SEC SPAC rules by DOGE could significantly impact the SPAC market, which experienced restrictions under Biden-era SEC policy. These shell companies raise funds through public listings to acquire private companies and also faced increased scrutiny over weak due diligence processes compared to traditional initial public offerings.
Republican SEC Commissioners Mark Uyeda and also Hester Peirce have in the past both objected to what they said were needless regulatory burdens for SPACs and also private funds. The removal of a “safe harbor” that had helped shield SPAC sponsors from legal liability for unrealistic or potentially misleading financial projections was particularly controversial among SPAC advocates.
Private Fund Reporting Changes
DOGE officials are also examining private fund reporting requirements that the SEC implemented through Form PF modifications in February 2024 right now. The SEC has already decided to delay firms’ compliance with those new requirements earlier this month, signaling that the agency is making potential modifications ahead as part of current Trump deregulation priorities.
The Republican commissioners also objected to additional reporting requirements for private funds the SEC and another agency voted for in February 2024, known as Form PF.
Official Responses and Also Expert Views
Taylor Rogers, a White House spokesperson, said DOGE was working with the SEC “to more efficiently maintain fair and orderly markets while protecting everyday investors.”
Taylor Rogers also stated:
“Under President Trump’s leadership, Chairman [Paul] Atkins and the SEC will ensure that the United States remains the best and most secure place in the world to invest and do business.”
A spokesperson for the SEC said:
“The SEC is working with DOGE to find cost efficiencies and ensure public funds are being used as effectively as possible.”
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Adam Pritchard, a law professor at the University of Michigan, had this to say:
“I daresay it is a departure from past practice, but whether White House influence is a ‘risk’ or an opportunity depends on your perspective. I am quite open to the idea that the staff could use a good kick in the pants to get them to repeal a few [rules]. I’ll bet Paul Atkins agrees with that instinct.”
Interest in SPACs has again risen following signals of potential regulatory relaxation. The SEC has been in talks with US exchange operators to loosen some regulatory requirements for SPACs as part of broader Trump deregulation efforts that are targeting private fund reporting and also SEC policy changes right now.