Holding SPACs Accountable Act of 2021

Holding SPACs Accountable Act of 2021

This bill revises the exclusion from safe harbor protections from liability applicable to forward-looking statements (i.e., statements that predict, project, or use future events as expectations or possibilities) made in connection with certain investments. Specifically, it excludes from the safe harbor a development stage company that has no specific business plan or purpose or has indicated that its business plan is to acquire or merge with an unidentified company, entity, or person (e.g., a special purpose acquisition company).

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5910 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 5910

To amend the Securities Act of 1933 and the Securities Exchange Act of 
1934 to exclude certain special purpose acquisition companies from safe 
     harbor for forward-looking statements, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                            November 9, 2021

 Mr. San Nicolas introduced the following bill; which was referred to 
                  the Committee on Financial Services

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                                 A BILL


 
To amend the Securities Act of 1933 and the Securities Exchange Act of 
1934 to exclude certain special purpose acquisition companies from safe 
     harbor for forward-looking statements, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Holding SPACs Accountable Act of 
2021''.

SEC. 2. CERTAIN SPECIAL PURPOSE ACQUISITION COMPANIES EXCLUDED FROM 
              SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS.

    (a) Securities Act of 1933.--Section 27A of the Securities Act of 
1933 (15 U.S.C. 77z-2) is amended--
            (1) in subsection (b)(1)(B), by striking ``a blank check 
        company'' and inserting ``a development stage company that has 
        no specific business plan or purpose or has indicated that its 
        business plan is to acquire or merge with an unidentified 
        company, entity, or person''; and
            (2) in subsection (i)(7), by striking ````blank check 
        company'',''.
    (b) Securities Exchange Act of 1934.--Section 21E of the Securities 
Exchange Act of 1934 (15 U.S.C. 78u-5) is amended--
            (1) in subsection (b)(1)(B), by striking ``a blank check 
        company'' and inserting ``a development stage company that has 
        no specific business plan or purpose or has indicated that its 
        business plan is to acquire or merge with an unidentified 
        company, entity, or person''; and
            (2) in subsection (i)(5), by striking ````blank check 
        company'',''.
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