If Jim Cramer was in charge of the Securities and Exchange Commission, there would be lots of crackdowns, starting with Chinese IPOs. But he also wants the SEC to get tougher on cryptocurrencies, pump-and-dump schemes, institutional manipulation, SPACs, robotic trading and even members of Congress.
On a recent episode of Mad Money, Cramer said now that SEC Chairman Gary Gensler has had a few months to settle into his new post, it's time for the regulatory agency to get to work, with so many areas needing more attention.
Topping Cramer's wish list is getting tougher on Chinese IPOs. Cramer said he'd ban all Chinese IPOs that fail to comply with U.S. rules.
Over on Real Money, Cramer says he doesn't know why the U.S. government doesn't demand the same level of disclosure for Chinese IPOs that it insists U.S. companies give. Why should the SEC let the Chinese off the hook? Read more of his investing insights in The Didi Fiasco Makes Clear Not to Invest in Chinese IPOs.
Second, Cramer said the SEC needs to take ownership over cryptocurrencies and ensure transparency and a level playing field for all investors.
Next, he would crack down on digital pump-and-dump schemes that recently took up shares of Wendy's (WEN) - Get Wendy's Company Report and NewEgg (NEGG) - Get NEWEGG COMMERCE, INC. Report, only to see shares crash back down after the pumpers exited with their winnings, Cramer said.
Cramer said the SEC must also tackle institutional manipulation. Hedge funds are being allowed to borrow far too much money with excess leverage, he said.
Rounding out Cramer's list of priorities is to crackdown on Special Purpose Acquisition Companies (SPACs), many of which have no real business, only hopes and dreams. A SPAC normally has no commercial operations of its own, existing as a “blank check” to acquire another company.
Cramer would also clamp down on robotic trading that shuts out individual investors who can't access the markets in milliseconds.
Finally, he'd add new rules for members of Congress, who are profiting while serving, thanks to blind trusts and shell corporations, Cramer said.