SEC to Impose Tougher Rules on Blank-Check Deals as SPACs Fizzle

Wall Street’s main regulator on Wednesday is set to demand more investor protections for deals involving special purpose acquisition companies, tightening rules on a once-popular pathway for taking firms public.

After surging during the Covid-19 pandemic as an alternative to traditional initial public offerings, blank-check companies have fallen out of favor during a years-long crackdown by the Securities and Exchange Commission. In a move that could further reduce interest, the SEC’s new rules would bring investor protections in SPAC deals closer to those of traditional IPOs — driving up legal risks and costs for those behind the transactions. ...