Trump Administration Pressures SEC to Ease SPAC and Private Fund Rules
President Trump’s Department of Government Efficiency (DOGE) is pushing the Securities and Exchange Commission (SEC) to roll back key financial regulations, including those targeting SPACs and private investment funds.
According to sources familiar with the matter, DOGE officials have recently engaged with SEC staff to revisit Biden-era rules they view as burdensome to business.
The deregulatory push aligns with Trump’s broader agenda to cut government oversight and accelerate economic growth. A February executive order tasked DOGE with identifying federal rules to eliminate if deemed costly or overly restrictive. As a result, DOGE is now influencing discussions within traditionally independent regulatory agencies.
The SEC under the Biden administration had tightened oversight on Special Purpose Acquisition Companies (SPACs) and required private funds to confidentially report more risk-related data. Critics said these measures protected investors; DOGE argues they discourage innovation. A spokesperson said the goal is to maintain fair markets while improving efficiency.
Still, the involvement of a White House efficiency unit in SEC rulemaking has raised concerns. Critics, including former SEC staff and policy advocates, worry about political interference in a body historically shielded from direct executive control. Amanda Fischer of Better Markets called it “outrageous” for non-appointed White House personnel to shape SEC rules.
Some deregulatory moves are already underway. The SEC is reportedly in talks with exchanges about relaxing SPAC-related rules, while compliance deadlines for private fund reporting have been delayed. Meanwhile, interest in SPACs is resurfacing, with some figures from Trump Media exploring new deals in tech and crypto sectors.
While the extent of DOGE’s influence remains unclear, experts say its impact could depend on perspective. “If it leads to clearing out outdated rules, that may be welcome,” said Adam Pritchard, law professor at the University of Michigan. “But it marks a shift in how the SEC operates—one that blurs the lines of regulatory independence.”
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