I don’t know.

The U.S. Securities and Exchange Commission (SEC) has become the week’s focal point after consumer-genomics company 23andMe Holding Co. announced plans to voluntarily delist its Class A shares from the Nasdaq and terminate registration with the regulator — a rare move for a once-high-profile biotech unicorn that went public via SPAC less than four years ago. From SPAC splash to quiet exit 23andMe merged with Richard Branson’s VG Acquisition Corp. in 2021 at a $3.5 billion valuation but has struggled to convert its rich trove of genetic data into profitable drug discoveries. The company’s market cap has since slid below $200 million, and trading volume has thinned, making the compliance costs of a U.S. exchange listing increasingly hard to justify. Why deregister with the SEC? By withdrawing its reporting obligations under the Securities Exchange Act, 23andMe will no longer file quarterly 10-Qs, annual 10-Ks or proxy statements, reducing legal and auditing expenses. Management says the capital saved will be redirected toward cash-intensive clinical trials and potential partnerships in pharmacogenomics. Shareholders will still be able to trade the stock over-the-counter, but liquidity is expected to decline. Investor protections and potential risks Deregistration frees the company from Sarbanes-Oxley internal-control attestations and the SEC’s pending climate-disclosure rules, but it also removes many safeguards retail investors rely on, including timely financial transparency and easy access to corporate governance information. Corporate-law specialists warn that minority shareholders could face wider bid-ask spreads and greater information asymmetry once the company moves to the pink sheets. Implications for the broader biotech sector The move spotlights a growing trend among small-cap biotechs grappling with higher interest rates and a risk-off funding environment. More than a dozen R&D-stage healthcare firms have departed major U.S. exchanges since 2023, signalling that the SEC may see a shrinking public-company roster even as it ramps up oversight of artificial-intelligence disclosures and crypto-asset custody. What’s next for the SEC While 23andMe heads for the OTC market, the Commission’s agenda remains packed: a looming final rule on predictive-data-analytics in brokerage apps, fresh enforcement sweeps in decentralized finance, and a third-annual conference on emerging trends in asset management slated for June. Market observers will be watching whether tighter AI-governance frameworks drive additional smaller issuers to rethink the cost–benefit calculus of staying listed. Key takeaways • 23andMe will file Form 25 with Nasdaq, followed by Form 15 to suspend SEC reporting duties. • Cost savings are expected to extend the company’s cash runway into FY 2027. • Share liquidity and analyst coverage will likely diminish post-delisting. • The SEC’s evolving disclosure regime continues to pressure thinly traded equities. For investors, the headline reinforces a hard truth of small-cap biotech: scientific promise alone cannot offset the structural costs of remaining a public company in today’s regulatory landscape.