Catenaa, Monday, July 07, 2025-The Department of Government Efficiency (DOGE), a Trump administration initiative, is pressing the US Securities and Exchange Commission to relax rules governing Special Purpose Acquisition Companies (SPACs) and private fund reporting requirements.
DOGE is advocating for rolling back regulations imposed during the Biden era, which aimed to increase investor protection and systemic risk oversight. The push to ease these rules is part of a broader effort to reduce federal regulatory burdens and encourage market growth.
Elon Musk, initially a key figure in DOGE, helped launch the task force that now works closely with the SEC. Although Musk recently stepped down from his government role citing frustration with bureaucracy and tax policies, DOGE’s influence on SEC rulemaking remains significant.
The SEC confirmed ongoing discussions with DOGE to improve efficiency while safeguarding investor interests.
Some Republican SEC commissioners, including Mark Uyeda and Hester Peirce, support revising the rules, arguing they hinder innovation and impose unnecessary costs on firms.
However, critics such as Amanda Fischer from Better Markets warn that DOGE’s involvement threatens the SEC’s regulatory independence, raising concerns about potential conflicts of interest in the policymaking process.
SPACs, once popular for quick public listings, face revived interest amid this deregulatory momentum. The Biden-era rules removed liability protections for SPAC sponsors and expanded data reporting, both targeted for rollback.
The regulatory tug-of-war illustrates tensions between deregulation advocates and consumer protection interests as the Trump administration seeks to reshape financial oversight.
