Annual SPAC total fundraising amounts and average trust account levels. The market peaked in 2021 but declined sharply due to policy tightening, and has been gradually recovering in recent years.
01 SEC Launches Rule Review, Signaling Easing of Regulations
The picture shows newly appointed SEC Chairman Paul Atkins, who stated that previous SPAC policies were controversial.
“There have been new rules adopted by the commission in the last couple of years regarding SPACs. Those were very, you know, rather controversial, let’s say. So, we’ll be looking at all of those things. You can’t build Rome overnight. But we’ll be addressing that.”
— Paul Atkins
Paul Atkins, the newly appointed SEC Chair, recently stated publicly that the SEC will conduct a comprehensive review of current SPAC-related regulations, aiming to ease excessive regulatory burdens that may be hindering capital formation. He noted that while certain rules protect investors, they may also inadvertently increase financing difficulties and stifle innovative funding avenues.
This statement signals that the SEC is reassessing SPAC regulations introduced during the Biden administration, which required stricter disclosures, limited the use of financial forecasts, and strengthened investor protection mechanisms. While well-intentioned, these rules—according to some market participants—have heightened uncertainty, significantly increased SPAC transaction costs, and narrowed the financing window.
02 White House Pushes for Deregulation, “Doge” Department Applies Pressure
Notably, this regulatory review is not solely an internal SEC initiative—it aligns closely with the current U.S. administration’s policy direction. According to foreign media reports, the “Department of Government Efficiency” (Doge), an agency under the U.S. government, has recently been pressuring the SEC to ease multiple financial regulations, including those on SPACs and private funds, with the aim of stimulating economic growth and revitalizing capital markets through deregulation.
The Doge department advocates repealing several disclosure and reporting obligations introduced during the Biden era, with SPACs being a key area of focus. This trend suggests that the SPAC market could see substantial policy “relaxation” at the regulatory level.
SPAC IPO data comparison for 2024 vs. 2025. As of 2025, the number of SPAC IPOs has reached 63, surpassing the full-year total of 57 in 2024.
03 Why It Matters: SPACs Could Once Again Become a Preferred Listing Vehicle
The market’s attraction to SPACs lies in their flexibility and time advantage compared to traditional IPOs. In mature capital markets, they offer an efficient pathway for startups, high-growth tech companies, and cross-border businesses to access the public markets.
If the SEC’s policy rollback is ultimately implemented, it could not only reduce the regulatory costs of SPACs but also rekindle market enthusiasm and unlock pent-up capital demand. For SPACs that have already raised funds but are still seeking merger targets, this would be a significant positive development.
News coverage of Goldman Sachs announcing its return to the SPAC market
Over the past two years, regulators have taken necessary steps to prevent a SPAC bubble. However, the tension between regulation and market activity has continued to evolve. The SEC’s proposed review of SPAC policies may signal that U.S. equity markets are attempting to restore a dynamic balance between “regulation” and “financing.”
For Chinese companies, international fund managers, and capital intermediaries seeking to participate in U.S. capital markets, this round of policy signals sends a clear message: SPACs are moving toward a more standardized and sustainable development path.
So far in 2024, Fupeng International has successfully completed five SPAC listings, setting an annual record for a single institution in the industry.
Enterprises with clear listing plans can contact Fupeng International for negotiation. With our cutting-edge capital structure design capabilities, we help innovative enterprises seize the historic opportunities in the SPAC 2.0 era.
