1. United States
2. Calif.
3. Letter

I am writing to you as a constituent to express my deep concern regarding recent and proposed regulatory shifts at the Nasdaq and S&P Dow Jones Indices. Specifically, I am troubled by the move toward "fast entry" rules and the potential waiving of financial viability requirements for so-called "Megacap" companies. As of June 2026, Nasdaq has already implemented a "fast entry" rule that allows massive companies to join the Nasdaq-100 after just 15 days of trading. Concurrently, S&P Dow Jones Indices is considering exempting Megacap IPOs from the long-standing requirement that a company must be profitable before being included in the S&P 500. These changes appear designed to fast-track companies like SpaceX and AI labs like Anthropic or OpenAI into the benchmark indices that serve as the foundation for the retirement savings of millions of Americans. This is economically unsound for several reasons: * Skyrocketing Volatility: Recent disclosures from the SpaceX IPO filing show a net loss of $4.3 billion in just the first quarter of 2026, with its AI segment alone losing $2.5 billion. Forcing these highly speculative, money-losing entities into passive index funds subjects stable retirement accounts to extreme, venture-capital-level risk. * "Forced Buying" Risks: Index inclusion triggers mandatory purchasing by ETFs and pension funds. By relaxing profitability and "seasoning" requirements, regulators are essentially forcing ordinary investors to subsidize the cash burn of companies that have not yet proven they can operate sustainably. * Erosion of Market Integrity: Requirements like the 12-month seasoning period and GAAP profitability have historically served as a vital "safety valve" for the public markets. Removing them creates a dangerous precedent where size alone—regardless of financial health—dictates market relevance. I urge you to use your oversight authority to engage with the Securities and Exchange Commission (SEC)and investigate these rule changes. We must ensure that our national benchmarks remain a reflection of stable, profitable American enterprise rather than a playground for speculative tech valuations. I look forward to hearing about the steps you will take to protect the retirement security of your constituents.