The Trump administration’s Department of Government Efficiency (DOGE) is pushing the SEC to loosen regulations on SPACs and private investment funds, aiming to reduce what are seen as burdensome rules introduced under Biden. This deregulatory move is part of a White House effort to cut red tape and stimulate economic growth. (AP Photo)
President Donald Trump’s Department of Government Efficiency (DOGE) is pressing the Securities and Exchange Commission (SEC) to ease regulations on Special Purpose Acquisition Companies (SPACs) and private investment funds, according to a Reuters report published on Tuesday that cited two sources familiar with the discussions.
DOGE officials, the report said, recently met with SEC staff to explore slashing what some call “burdensome and unnecessary” rules implemented during the Biden administration, in a move that aligns with the Trump administration’s goal of reducing government oversight to boost economic growth.
Trump’s executive order in February directs federal agencies to find regulations that place an “undue burden” or expense on companies.
Although the SEC chair is nominated by the president and typically tracks White House agendas, insiders told the news agency that some SEC officials are uncomfortable with DOGE’s hands-on involvement in policy development. The SEC has traditionally been accorded independence, keeping political influence at arm’s length to maintain regulatory integrity.
The Biden administration’s stricter SPAC regulations were designed to shield investors against risky transactions and halt backdoor risk in private funds. SPACs—shells raising cash to acquire private companies and list them on the stock exchange—had become extremely popular but were being criticised for being less rigorous than conventional IPOs.
Republican SEC Commissioners Hester Peirce and Mark Uyeda were opposed to the tighter regulations, saying that they suppressed a useful investment vehicle. The SEC has, in fact, already started negotiations to ease some SPAC regulations, the report said.
White House spokesperson Taylor Rogers indicated DOGE is collaborating with the SEC “to more effectively preserve fair and orderly markets and safeguard ordinary investors, as reported by Reuters.
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