Who is responsible for regulating how securities are sold?

The Securities and Exchange Commission (SEC) is the primary regulatory body responsible for overseeing how securities are sold in the United States. Established in 1934, the SEC's mission is to protect investors, maintain fair and efficient markets, and facilitate capital formation. It operates under a mandate to enforce securities laws and regulate security offering practices, ensuring that investors have access to essential information and that transactions occur in a fair and transparent manner.

The SEC has broad authority, including the power to oversee registration of securities, enforce compliance with the securities laws, and regulate broker-dealers and investment advisors. Its role is fundamental in creating a reliable environment for investing in securities, thus fostering trust in the financial markets.

In contrast, other organizations listed have different specific roles. For example, the Federal Reserve Board (FRB) primarily manages monetary policy and regulates banks, while the Commodity Futures Trading Commission (CFTC) regulates commodity futures and options markets. The Financial Industry Regulatory Authority (FINRA) also plays a crucial role but primarily acts as a self-regulatory organization (SRO) overseeing brokerage firms and exchange markets. While FINRA does enforce rules concerning securities, it operates under the oversight of the SEC, which holds the ultimate responsibility for regulating the sale of securities.