SEC’s SPAC Rules to Limit Rosy Projections That Fueled Mania

At the height of the SPAC boom, liberated startups capitalized on the ability to tout lofty goals about the years ahead without much of a risk of legal fallout.

Now, the US Securities and Exchange Commission’s new rules tightening SPACs’ disclosure requirements are set to clamp down on such forecasts when they come into force as soon as later this year. In hindsight, some companies that merged with blank-check vehicles during the pandemic-era boom may wish they hadn’t talked up their fortunes so optimistically.