What U.S. federal agency regulates securities markets and enforces federal securities laws?

The Securities and Exchange Commission is the U.S. federal agency that regulates securities markets and enforces federal securities laws.

Congress created the SEC in 1934 during the aftermath of the 1929 stock-market crash. Its central mission is commonly summarized as protecting investors, maintaining fair and orderly markets, and facilitating capital formation. The agency oversees areas including public-company disclosures, securities exchanges, brokers, investment advisers, and mutual funds.

The SEC is sometimes confused with the Federal Reserve, which conducts monetary policy and supervises parts of the banking system. It is also distinct from the Commodity Futures Trading Commission, which primarily regulates futures, options, and swaps markets. The SEC does not guarantee investment profits; securities can lose value even when their issuers comply with disclosure rules.