Which U.S. law passed after the 1929 crash created the Securities and Exchange Commission?

The Securities Exchange Act of 1934 created the U.S. Securities and Exchange Commission after the 1929 crash.

The act became federal law on 6 June 1934 and established the SEC as an independent regulator of securities markets. It also required many publicly traded companies to provide continuing financial information and gave the federal government authority over stock exchanges and securities trading.

The law followed public concern about market manipulation, misleading corporate disclosures, and speculative practices associated with the Wall Street crash and the Great Depression. Joseph P. Kennedy became the SEC’s first chairman, despite his earlier career as a prominent market speculator.

The Securities Act of 1933 is a common mix-up. That earlier law focused mainly on new securities offerings and initial disclosure, whereas the 1934 act addressed secondary-market trading, exchanges, brokers, dealers, and ongoing reporting.