SEC, also known as the Securities and Exchange Commission, was established by the United States Congress in 1934. The main purpose of the institution that oversees the stock market and capital markets is to protect investors and the national economy. Securities and Exchange Commission; regulates stock markets, stock exchanges, and all transactions related to securities. The commission working on implementation-supervision-regulation; enforcing laws, regulating stock exchanges, and overseeing electronic securities markets.
It is said that the SEC will create a law on the examination and regulation of institutions in the crypto money market in the near future. Recently, SEC chairman Gary Gensler stated that they are securities for cryptocurrencies, and especially bitcoin investors should be protected.
Departments of the SEC
The Securities and Exchange Commission has five different divisions. Each department has its own separate institutions and the duties of these institutions. These are:
- Company Finance: This is the department that oversees the transactions of publicly traded companies.
- Trading and Markets: In this section, the SEC delegates its enforcement and rule-making authority to the FINRA (Financial Industry Regulatory Authority). FINRA counts as the regulator of the securities industry.
- Investment Management: This department, which has duties such as examining mutual funds and investment advisors, plays an auxiliary role in laws and regulations. It also governs federal securities laws, such as the SEC’s 1040 Investment Company Act.
- Implementation: In this section, the violations of the laws enacted by the SEC are investigated and the necessary institutions and organizations are prosecuted.
- Economic and Risk Analysis: It is involved in all of the SEC’s operations, such as rule-making, policymaking, enforcement, and regulation. The economic and risk analysis division is working together with the corporate finance, trading and markets, investment management, and enforcement divisions. It is the SEC’s headquarters.
What Are SEC (Securities and Exchange Commission Duties?
It is wondered what the duties of the SEC, the important company of the USA, which provides the regulatory function in the markets, are. The SEC institution has duties regarding investors and the national economy in the USA.
These duties, which fall under the scope of the stock exchange and capital markets:
- Indicate whether the assets fall into the securities category,
- To determine which classification the securities are suitable for,
- Establish and enforce federal securities laws
- Regulating the securities industry,
- To sue the necessary institutions and organizations in case of violation of the determined laws,
- To regulate institutions and organizations in the electronic securities market,
- Regulating the stock market,
- Items such as regulating country stock and options exchanges belonging to the United States are among the duties of the SEC.