Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Axios on your phone

Get breaking news and scoops on the go with the Axios app.

Download for free.

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

The SPAC party may not be over, but the cops are asking everyone to keep the noise down.

Driving the news: The SEC is mulling new guidance on when safe harbor applies to forward-looking statements by companies going public via SPAC, according to Reuters.

  • This comes on top of recent SEC clarification to how SPACs account for warrants, which crushed new SPAC formations under a paperwork logjam.

Safe harbor: The SPAC surge has been driven, in part, by an understanding that target companies can provide more forward-looking projections than would be allowed via a traditional IPO. That's why we've seen so many pre-commercial tech companies take this path, including futuristic vehicle makers (e.g., flying taxis, AVs, spaceships).

  • Regulators may seek to drain that safe harbor for SPACs.
  • There are some who argue that the SEC should move in the opposite direction, by extending the protections to IPO issuers, but that doesn't sound like it's on the table.

Accounting: It's been about three weeks since the SEC issued guidance on SPAC warrants accounting, and new formations have fallen off a cliff. Some mornings there would be a dozen new SPACs in this newsletter, whereas the current over/under is one.

  • Almost any SPAC with warrants (i.e., most of them) has to rework their numbers — a process that involves bankers, accountants, lawyers and printers. In short, the service providers are swamped.
  • Not only is this resulting in stalled formations, but also delays in new merger announcements and completions of already-announced mergers. WSJ reporter Amrith Ramkumar wrote yesterday: "The dwindling total of new mergers concerns some analysts because the market is falling behind the pace needed for all of the existing SPACs to find targets in the next two years — the typical deadline for blank-check firms to do deals."

The bottom line: SPACs have been around for decades, but gained new popularity because they were easy money for both sponsors and targets. Now, the blank check may be coming due.

Go deeper

Attempting to reform gig work via co-ops

Illustration: Sarah Grillo/Axios

Ride-hailing service The Drivers Cooperative recently debuted in New York City, claiming that its lack of VC funding would result in better driver pay and lower passenger costs.

Why it matters: TDC’s approach is a direct rebuke to the venture capital-fueled gig economy model.

12 mins ago - World

Conservative cleric Raisi elected Iran's president

Raisi gives a press conference after voting. Photo: Atta Kenare/AFP via Getty

Hardliner Ebrahim Raisi easily won Friday's presidential election in Iran, recording 62% of the vote with more than 90% of ballots counted.

Why it matters: Currently the head of Iran's judiciary, Raisi is a close confidant of Supreme Leader Ali Khamenei and has the support of the Islamic Revolutionary Guard Corps (IRGC). His victory solidifies him as a leading candidate to succeed Khamenei, though Friday's low turnout speaks to the disillusionment of many Iranian voters.

Juneteenth forces U.S. to confront lasting impact of slavery economy

Photo illustration: Sarah Grillo/Axios. Photo: Corbis, Brittany Murray/MediaNews Group/Long Beach Press-Telegram via Getty Images

Juneteenth, a once-obscure commemoration of emancipation of enslaved people in Texas, has transformed into an annual reminder about how slavery robbed Black Americans of generational wealth.

Why it matters: That lack of generational wealth still denies Black families the economic security that many white families take for granted.