Democratic U.S. Senator Elizabeth Warren is planning a bill to crack down on the SPAC industry after a “proliferation” of bad deals that have often resulted in huge losses for investors, according to a report to be released today, Reuters reports.
Warren’s forthcoming “SPAC Accountability Act of 2022” would increase the legal liability for a range of parties involved in such deals, enhance investor disclosures and lock up for a longer period early investors which bankroll the deals.
While Warren’s bill may struggle to gain traction this year with lawmakers focused on the midterm elections, it’s likely to increase pressure on the industry which is already facing proposed new curbs from the SEC. Read more.
