Which entity does oversee the establishment of regulations and standards for trading in securities?

The Securities and Exchange Commission (SEC) is the primary regulatory body tasked with overseeing the securities industry in the United States. It was created to protect investors, maintain fair and efficient markets, and facilitate capital formation. The SEC establishes rules that govern the securities industry, which includes stock exchanges, broker-dealers, investment advisors, and mutual funds, among others.

The SEC is charged with enforcing securities laws and ensuring that market participants adhere to these regulations to foster transparency and integrity within the financial markets. Its regulatory framework helps to safeguard against fraud and deception, ensuring that all relevant information is disclosed to potential investors.

While organizations like FINRA also play a significant role in regulating aspects of the securities industry, particularly in relation to brokerage firms and their registered representatives, the SEC has the broader authority and responsibility for overall regulatory standards in trading securities. Other options, such as the Federal Reserve and the IRS, serve different functions that do not focus specifically on the regulation of securities trading.