Crypto Terms: Letter S

What is Securities and Exchange Commission (SEC)?

Securities and Exchange Commission (SEC) MEANING:
Securities and Exchange Commission (SEC) - an independent US federal government regulatory organization tasked with protecting institutions and individuals against market manipulation.
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Let's find out Securities and Exchange Commission (SEC) meaning, definition in crypto, what is Securities and Exchange Commission (SEC), and all other detailed facts.

The United States Securities and Exchange Commission (SEC) was founded by Congress in 1934 and it is considered to be the very first federal government of the securities markets. Since it was the same time after the Wall Street Crash of 1929, the major purpose was to safeguard investors as well as their holdings.

The SEC is now led by former MIT blockchain scholar Gary Gensler, who has had some ups and downs with the cryptocurrency sector since its creation, along with a series of high-profile charges of Ripple Labs, John McAfee, Telegram, and others.

Furthermore, the SEC is accountable for supporting various businesses in generating capital in order to create jobs, provide financial investment possibilities, and discover new solutions to challenges.

They are also concerned with keeping markets efficient and systematic by staying current on market news and changes and, as a result, updating and upgrading their skills and rules to maintain pace.

The SEC requires all market players to periodically publish thorough and latest information that investors require to make secure and educated investment choices as part of the overall purpose. Through their Office of Investor Education and Advocacy, they provide the most relevant investor education and information.

As mentioned above, the SEC safeguards investors by implementing federal securities laws in order to hold lawbreakers responsible and avoid future wrongdoing. The SEC's involvement is critical since American families control more than 58% of the US equities market via mutual funds, retirement accounts, and other assets.

In addition, the SEC has 5 divisions as well as 24 offices. These five divisions are:

  • Division of Enforcement;
  • Division of Corporate Finance;
  • Division of Investment Management;
  • Division of Trading and Markets;
  • Division of Economic and Risk Analysis.

Overall, its mission is to interpret and apply securities laws, create new regulations, oversee securities institutions, and administer regulations across multiple levels of government.