Everything you need to know about the US Securities and Exchange Commission (SEC). In this article, we will clarify this responsible institution from zero to one hundred, so please take a few minutes to read this article. The United States Securities and Exchange Commission is a regulatory body for financial markets. This independent agency has several duties, the main goal of which is to treat American investors fairly. In addition, the SEC regulates the capital markets and ensures that investors on They invest in a safe and fair market. This institution influencing the financial markets is also known as the capital market police.
Generally, securities must be registered with the Securities and Exchange Commission (SEC) before they can be sold in interstate commerce. Financial services companies, such as broker-dealer companies, consulting firms and asset managers, as well as their representatives, must be registered with the Securities and Exchange Commission. For example, this body is responsible for approving any exchange dealing in the digital currency Bitcoin (BTC). Also, the SEC commission supervises the takeover of companies and approves applications for registration of financial instruments such as stocks. This independent agency is able to prosecute cases of violations of the Civil Procedure Law. It is better to be informed about the latest decisions of this institution. It is better to visit our news site. Follow. Like the Federal Reserve, the SEC was created for a reason.
The date of formation of the Securities Commission
If we look at the history of the SEC, when the US stock market crashed in October 1929, the securities issued by various companies became worthless. Since many of these companies had previously given false or misleading information to customers and actually deceived them, people’s confidence in the entire stock market decreased.
In order to restore public confidence, the US Congress passed the Securities Act in 1933 and the Securities Exchange Act in 1934, thus establishing the SEC. The primary duties of the SEC were to investigate companies and admit those that made honest claims and treated their customers to the US stock exchange. After the establishment of the SEC, new rules were enacted several times to help fulfill the commission’s obligations.
The laws that have been enacted so far are as follows: · Trust Indenture Act of 1939 · Investment Company Act of 1940 · Investment Advisers Act of 1940 · Sarbanes-Oxley Act of 2002 · Dodd-Frank Reforms Act -Frank) and the Consumer Protection Act of 2010 · The JOBS Act of 2012 The SEC takes many enforcement and legal actions each year against companies and individuals who violate securities laws.
What was the main purpose of establishing the SEC in the US Congress? But do you know what the purpose of establishing the SEC is? The purpose of all these departments is the same, and they all work to interpret and take enforcement action on securities laws, issue new rules, supervise securities institutions, and coordinate regulations between different levels of government.
The corporate finance department ensures that important information (i.e., information about the company’s financial outlook or stock price) is provided to investors so that they can make informed decisions.
The Department of Trade and Markets sets standards to create fair, orderly and efficient markets.
The Division of Investment Management oversees investment firms, their products and services, and investment advisers registered with the U.S. government.
The enforcement department is responsible for the implementation of the regulations of the Securities and Exchange Commission by handling the files and assets of companies and investors. In the past few years, the SEC organization has paid special attention to cases related to digital currencies due to the increase in cryptocurrency investors.
Economic and risk analysis department analyzes and manages all the details related to market fluctuations, profits and losses.
The SEC is authorized to hear only claims brought by investors and small companies in federal court before an administrative judge. The responsibility of criminal cases in this department is the responsibility of the law enforcement agencies in the Ministry of Justice. Of course, the SEC usually works closely with these organizations to provide evidence and assist the court.
How does this market regulatory organization work?
How does this market regulatory organization work? This American organization consists of five members who are elected by the President of the United States. The working term of each commission is five years, although it is possible for them to serve up to 18 months longer if there is no replacement. Mr. Gary Gensler is the current president of this institution, which started working in 2021. In order to ensure that the commission is non-partisan, this body creates a law that no more than three members of the same party can be in the commission. So far, this institution has more than 4,000,000 employees who are present in 6 departments.
The six important sectors in which the Securities Exchange Commission is active are: corporate finance, law review, economic and risk analysis, investment management, execution, trade and markets. In general, the important task of this institution is to deal with the markets to identify the main members of the financial markets in order to provide investors with a safe environment. It goes without saying that until now, big companies have been fined by the SEC.
We will examine the Commission’s treatment of cryptocurrency technology at the end of the article. As at the beginning of the article, you are familiar with this American regulatory body. This body was established to monitor the markets, and any securities that want to start operating must first be registered in this body. The reactions of the SEC against the digital currency market have attracted the attention of the investors of this market. The US Securities and Exchange Commission is trying to provide clear rules for the use of the cryptocurrency industry as soon as possible in order to provide a safe environment for the activists. to place digital currencies in the market. Until now, many cryptocurrency companies, including Ripple, Binance, Coinbase, etc., have had severe conflicts in relation to securities. Undoubtedly, this institution, due to the new conditions and rules for The adoption of digital currencies will affect the market of digital currencies and the price of Bitcoin. Everything you need to know about the stock exchange commission has been briefly explained in this article. If you know an institution or a person or a company that can affect the price of bitcoin, please introduce us on the institutions page. We will definitely register after checking. did
