Which agency is responsible for overseeing the securities industry in the United States?

The Securities and Exchange Commission (SEC) is the primary regulatory agency responsible for overseeing the securities industry in the United States. Established in 1934, the SEC's main objectives include protecting investors, maintaining fair and efficient markets, and facilitating capital formation. It achieves these goals through enforcing securities laws and regulations, monitoring the activities of securities firms, and ensuring that public companies provide transparent and accurate information to investors.

Understanding the role of the SEC is crucial, as it establishes rules governing the issuance and trading of securities, including stocks and bonds. The SEC also has the authority to investigate violations and bring enforcement actions against firms and individuals who engage in fraudulent activities. This makes it a vital institution for maintaining trust and integrity in the financial markets.

Other agencies, while important in their respective areas, do not have the same level of authority over the securities industry. The Federal Reserve primarily focuses on monetary policy and regulating banks. The Commodities Futures Trading Commission oversees trading in commodity futures and options markets, while the Financial Industry Regulatory Authority, as a self-regulatory organization, supervises brokerage firms and exchange markets but operates under the oversight of the SEC. Thus, the SEC is distinctly positioned as the authoritative body for the securities industry.