Who regulates the process by which issuers raise capital in the U.S.?

The Securities and Exchange Commission (SEC) is the primary regulator overseeing the process by which issuers raise capital in the United States. This includes overseeing the issuance of securities, ensuring that companies provide investors with accurate and complete information through registration statements and prospectuses. The SEC's role is crucial in maintaining the integrity of the securities markets and protecting investors from fraud.

By enforcing securities laws, the SEC helps to create a level playing field for all investors, promoting transparency and fairness in the capital-raising process. For instance, companies must file reports with the SEC, and they are subject to regulations regarding the disclosure of information to ensure that all potential investors have access to the same material data when making investment decisions.

Other regulatory entities, such as the FDIC, IRS, and FINRA, have distinct responsibilities. The FDIC primarily oversees and insures bank deposits, the IRS manages tax-related issues, and FINRA regulates broker-dealers and their interactions with the public. However, these organizations do not regulate the actual process of issuers raising capital like the SEC does. Hence, the SEC's role is pivotal in shaping the capital-raising landscape in the U.S. financial markets.