How ICAN May Challenge SEC’s Final SPAC Rules
In this episode of The SPAC Podcast, Nick Morgan, Partner at Paul Hastings LLP and co-founder of ICAN (Investor Choice Advocates Network), outlines potential legal and advocacy strategies ICAN may pursue in response to the SEC’s new SPAC rules.
Nick points to one central question: Does the SEC even have statutory authority to change PSLRA liability protections? ICAN is considering challenging that very issue, not from a sponsor’s perspective, but from the lens of investors whose choices may be restricted.
He also notes that several high-profile rules from the Gensler-era SEC have already been struck down for violating the Administrative Procedure Act (APA), constitutional provisions, or exceeding statutory authority and he believes the new SPAC rules share many of those weaknesses.
For sponsors, investors, and market participants, this episode highlights how strategic litigation and advocacy could reshape the regulatory landscape.
Connect with the Guest:
Nick Morgan – Partner, Paul Hastings LLP | Co-Founder, ICAN
LinkedIn: https://www.linkedin.com/in/nicholasrmorgan/
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https://www.thespacpodcast.com/guests/nick-morgan/
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Michael Blankenship LinkedIn:
https://www.linkedin.com/in/mikeblankenship/
Joshua Wilson LinkedIn:
https://www.linkedin.com/in/joshuabrucewilson/
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Disclaimers:
The views, opinions, and statements expressed by the guest are solely their own and do not necessarily reflect the views of The SPAC Podcast, its hosts, or affiliated organizations. This content is for informational purposes only and should not be construed as investment, legal, tax, or accounting advice.
Michael J. Blankenship is a licensed attorney and is a partner at Winston & Strawn LLP. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is intended for informational and educational purposes only and should not be interpreted as legal, financial, or compliance advice. The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the official policies or positions of any regulatory agency, law firm, employer, or organization.
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Let’s Connect on LinkedIn:
👉 Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
👉 ...
Michael Blankenship:
Given ICAN’s focus on strategic litigation and advocacy to challenge SEC overreach, what avenues might ICAN pursue in response to the SEC’s final SPAC rules?
Nick Morgan:
One question is whether the SEC has statutory authority to change PSLRA liability exposure. ICAN would like to challenge that from an investor’s perspective: does altering the statutory regime really help investors?
We’ll also be looking for other opportunities where these rules restrict investor choice.
The track record of other Gensler-era SEC rules isn’t great. Many have gone down for violating the APA, constitutional provisions, or exceeding statutory authority. I think the SPAC rules suffer from many of the same weaknesses.