The name “Special Purpose Acquisition Company” or “SPAC” has been around since the 1990s but only recently have these blank-check companies become popular enough to draw significant attention from investors and the Securities and Exchange Commission (“SEC”). (Holmes, Forbes). According to the SEC, a SPAC is a company with no operations that goes public for the sole purpose of acquiring a private company—effectively bringing the private company public. (Division of Corporate Finance Staff, SEC). SPACs offer an alternative to the traditional Initial Public Offering (“IPO”) route for taking a company public. (Frank Holmes, Forbes). While this alternative has its advantages, the SEC has begun taking action as it relates to SPACs and applicable disclosures. . .

“DeFi” is short-form for decentralized finance, a method of executing financial transactions without the middlemen—brokerages, exchanges, banks, and other intermediaries. (Devine, US News). An understanding of yield farming cannot be achieved without first understanding the term DeFi. In the purest sense of the term, DeFi “must have no centralized control but run autonomously on a blockchain through the use of smart contracts.” Id. These smart contracts are “bits of code that perform actions once certain conditions have been met,” self-executing when specific outcomes occur. Id. Generally, DeFi has come to be known as the term for “any application or business that uses blockchain technology or cryptocurrency to create alternative financial products.” Id. One practice catching the attention of the SEC is yield farming, a method of lending crypto currency to which the SEC believes federal securities regulations apply. (Kharif, Bloomberg Law). . .