Recently, SPACs seem to have lost much of their allure, but why? Certainly there are multiple reasons related to the capital markets, but one reason may have been the anxiety of many SPAC proponents precipitated by the proposal that the sec advanced in 2022 to regulate SPAC and de-spac disclosure and liability. Commissioner Hester Peirce, who had dissented on even issuing the proposal, remarked at the time that the proposal “seem[ed] designed to stop SPACs in their tracks.”
Source: SEC adopts new rules on SPACs—just investor protection or will it spell the demise of SPACs?