SPACs Face Legislative Scrutiny

Author: Carlos E. Juarez

Two pieces of legislation aimed at imposing additional regulations on special purpose acquisition companies (“SPACs”) were recently introduced in the US House of Representatives. H.R. 5910, the “Holding SPACs Accountable Act of 2021,” sponsored by Rep. Michael San Nicolas (D-GU), and H.R. 5913, the “Protecting Investors from Excessive SPACs Fees Act of 2021,” sponsored by Rep. Brad Sherman (D-CA), were both introduced on November 9, 2021 and subsequently referred to the House Committee on Financial Services (the “Committee”). On November 16, after a full committee markup, H.R. 5910 and H.R. 5913 passed the Committee and were ordered reported by a vote of 27-23 and 29-23, respectively.