Which regulatory body oversees the securities industry in the U.S.?

The Securities and Exchange Commission (SEC) is the primary regulatory body overseeing the securities industry in the U.S. The SEC was established to protect investors, maintain fair and efficient markets, and facilitate capital formation. It has the authority to regulate securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. The SEC enforces securities laws and is responsible for ensuring that market participants engage in fair practices, providing transparency and protecting investors from fraud.

While other regulatory bodies play important roles in the financial market, none have the broad regulatory authority over the entire securities industry like the SEC does. For instance, the Federal Reserve primarily focuses on monetary policy and the stability of the banking system rather than direct regulation of the securities markets. The Commodity Futures Trading Commission (CFTC) oversees the commodities and futures markets specifically, not the broader securities sector. The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees brokerage firms and exchange markets, but it operates under the authority of the SEC and is focused on specific aspects of market regulation rather than overseeing the entire securities industry.