Job Creators Network Files Public Comments Opposing SEC’s New Proposed Rule Targeting SPACs

Yesterday, Job Creators Network filed public comments opposing a new rule proposed by the Securities and Exchange Commission (SEC) to further regulate Special Purpose Acquisition Companies (SPACs). Alfredo Ortiz, president and CEO of Job Creators Network, released the following statement: 

“The SEC’s proposed rule overregulating SPACs is another attempt by the Biden administration to prevent small businesses from growing and bringing the economy back to its pre-pandemic strength. In recent years, many flourishing businesses have used SPACs to access capital, create jobs, generate economic growth, and reward Main Street investors. These small companies are generally shut out of the traditional initial public offering (IPO) process because they don’t have the funds to pay the necessary fees to big investment banks. SPACs are a necessary alternative for small businesses. They provide financial competition and overcome the market power of the big banks.

Yet because SPACs threaten big businesses and big banks, they have come under scrutiny from big government. The SEC’s proposed rule includes numerous burdensome regulations that would make SPAC’s uncompetitive, shutting out countless innovative small businesses from access to capital. If finalized, the regulations would essentially eliminate SPACs — or at least chase them offshore. The rule is illegal and violates the SEC’s mission to promote competition and capital formation. The SEC should heed JCN’s comments about SPAC’s vital role in democratizing access to capital and avoid finalizing this rule as written.”