Wall Street’s main regulator is signalling that the Biden era will spell tougher oversight for cryptocurrencies and blank-cheque companies, two of the white-hot market’s most talked-about asset classes.
US Securities and Exchange Commission chairman Gary Gensler on Wednesday told politicians that special purpose acquisition companies and digital coins posed significant policy and investor protection questions. He referred to SPACs, shell companies that list on stock exchanges for the purpose of buying other firms and making them public, as “blank-cheque IPOs”.
The financial world has been anxiously waiting to see how Mr Gensler will steer the SEC at a time when retail investors have helped to drive markets to record highs. Crypto enthusiasts, who had been hoping the regulator would take a more accommodative approach to digital coins, have thus far been disappointed – and on Wednesday they got more of the same.
“I look forward to working with fellow regulators and with Congress to fill in the gaps of investor protection in these crypto markets,” he said in remarks prepared for a House Appropriations Committee subcommittee. He raised concerns about everything from crypto exchanges to decentralised financial platforms.
During the hearing, Mr Gensler went further, adding that he wanted to bring the kind of protections to crypto exchanges that a stock investor would get on New York Stock Exchange or Nasdaq platforms.
On equity markets, Mr Gensler discussed how the SPAC boom – along with the surge in IPOs and direct listings – had placed a “a lot of demands on the SEC’s limited resources”. He said that the agency has spent significant time on the issue, citing guidance issued last month for how companies should account for warrants held by early investors in SPACs.
“Beyond the real demands on SEC resources, the surge of SPACs raises a number of policy questions,” Mr Gensler said. “First and foremost, are SPAC investors being appropriately protected? Are retail investors getting the appropriate and accurate information they need at each stage – the first blank-cheque IPO stage and the second target IPO stage? Second, how do SPACs fit in to our mission to maintain fair, orderly and efficient markets? It could be the case that SPACs are less efficient than traditional IPOs.”
During the hearing, Mr Gensler signalled that oversight on private equity was also likely to be stepped up. He said he has asked staff to review the current regulatory disclosures that firms must file with the SEC and to look at the structure of relationships between asset managers or general partners and limited partners, which are often pension funds.
Killing of Qassem Suleimani
Glossary of a stock market revolution
Reddit
A discussion website
Redditor
The users of Reddit
Robinhood
A smartphone app for buying and selling shares
Short seller
Selling a stock today in the belief its price will fall in the future
Short squeeze
Traders forced to buy a stock they are shorting
Naked short
An illegal practice
Green ambitions
- Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
- Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
- Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
- Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water
Killing of Qassem Suleimani
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The five pillars of Islam
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
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Dubai Women's Tour teams
Agolico BMC
Andy Schleck Cycles-Immo Losch
Aromitalia Basso Bikes Vaiano
Cogeas Mettler Look
Doltcini-Van Eyck Sport
Hitec Products – Birk Sport
Kazakhstan National Team
Kuwait Cycling Team
Macogep Tornatech Girondins de Bordeaux
Minsk Cycling Club
Pannonia Regional Team (Fehérvár)
Team Auvergne-Rhône-Alpes
Team Ciclotel
UAE Women’s Team
Under 23 Kazakhstan Team
Wheel Divas Cycling Team
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Sunday's Super Four matches
Dubai, 3.30pm
India v Pakistan
Abu Dhabi, 3.30pm
Bangladesh v Afghanistan
Match info:
Burnley 0
Manchester United 2
Lukaku (22', 44')
Red card: Marcus Rashford (Man United)
Man of the match: Romelu Lukaku (Manchester United)
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
More on Quran memorisation:
Mohammed bin Zayed Majlis
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs: 2017 Dodge Viper SRT
Price, base / as tested Dh460,000
Engine 8.4L V10
Transmission Six-speed manual
Power 645hp @ 6,200rpm
Torque 813Nm @ 5,000rpm
Fuel economy, combined 16.8L / 100km
UAE currency: the story behind the money in your pockets
T20 World Cup Qualifier
October 18 – November 2
Opening fixtures
Friday, October 18
ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya
Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan
Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed
Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed
