Gensler Warns Executives Against Using SPACs to Shirk U.S. Rules

Securities and Exchange Commission Chair Gary Gensler is warning companies against seeking a tie-up with a blank-check company as a less arduous path to going public.

Gensler signaled at an event Tuesday for business executives that Wall Street’s main regulator is on the look-out for firms that want to use special purpose acquisition company mergers to sidestep red tape associated with traditional initial public offerings. Gensler’s comments come as the regulator steps up its scrutiny of firms involved in SPAC deals, including Lucid Group Inc. and Digital World Acquisition Corp., which is merging with former President Donald Trump’s media ...