SEC Commissioner Caroline Crenshaw in a roundtable discussion yesterday addressed SPACs, IPOs and the regulator’s role governing the markets.
Since the SPAC boom began, the SEC identified several areas of concern, including misaligned incentives, several points of dilution that may disproportionately impact retail investors, and a lack of liability that may be creating an unjustified advantage in this path to the public markets over the traditional IPO. The questions and challenges of how to adequately address these concerns in a balanced way remain, the commissioner added.
“…we need to be careful not facilitate a race to the bottom in terms of public market protections,” she said. Read more.
