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GOP Rep. Meuser presses SEC over delayed Truth Social merger

"Please know that congressional scrutiny of this matter will continue," he warned.

Published: July 18, 2023 3:05pm

Updated: July 18, 2023 3:47pm

Pennsylvania Republican Rep. Dan Meuser on Tuesday asked that Securities and Exchange Commission (SEC) Chairman Gary Gensler expeditiously consider a settlement involving Digital World Acquisition Corp. (DWAC) so as to advance its merger with the Trump Media & Technology Group ahead of a looming deadline to complete the deal.

"The SEC's primary mission is to protect investors, maintain fair markets, and facilitate capital formation," Meuser wrote. "Yet, the current inaction and delay surrounding the DWAC SPAC settlement and S-4 review contradicts these fundamental objectives."

Digital World is a a special purpose acquisition company (SPAC) that aims to merge with the firm operating Truth Social and thereby enable the platform's appearance on the stock exchange. That process has long been delayed due to SEC scrutiny of Digital World; the merger proposal has a limited lifespan slated to end on Sept. 8.

DWAC filed its S-4 registration with the SEC in May of last year to merge with the Trump-controlled firm, but the SEC investigation has caused the commission to refuse to review the registration.

Digital world has already reached a "settlement in principle" with the SEC's Division of Enforcement over securities violations, however, though it still needs commission approval before the Division of Corporate Finance can review Digital World's registration.

Meuser asked for the commission's "prompt consideration" of the settlement so as to expedite the process ahead of the looming deadline.

"Please know that congressional scrutiny of this matter will continue," he warned. "We trust that all components of the SEC will work towards a swift resolution that promotes public confidence in the Commission and allows for prompt consideration of DWAC's filing."

The lengthy delay of the merger has led some to suggest that the SEC is deliberately attempting to kill the deal in a bid to punish former President Donald Trump financially.

Trump Media & Technology Group CEO Devin Nunes has pointed to the abundance of individuals with ties to the former president's political rivals in senior positions at the SEC.

"[Y]ou've got Gensler there, who[m] we outed as the guy who actually was the CFO for the Hillary campaign, who actually wrote the check to Fusion GPS," he said in April. "You have Peter Strzok's wife, who is there, the disgraced FBI agent who was running the Russia hoax. You have the general counsel there at the SEC, happens to be she used to work for Pelosi has now graduated up."

He further accused Gensler of working "overtime to try to kill our company."

"We're a privately held company. We've been attempting to merge with a finance company. It's a well-known mechanism," he said. "The stockholders, the shareholders have voted overwhelmingly to stay involved in this. We have said that, 'look, we'd like to get this deal completed.' But it just goes nowhere. And it makes no sense."

Meuser noted in his letter that he was writing on behalf of 350,000 retail investors who collectively control about $420 million. Firms conventionally seek to go public as a means of raising capital to finance expansion. 

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.

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