Which U.S. regulatory body oversees IPOs?

The U.S. regulatory body that oversees IPOs is the Securities and Exchange Commission (SEC). For a registered public offering, a company generally files a registration statement with the SEC, and the agency reviews the disclosure before the offering can proceed.

The SEC was created by Congress in 1934, during the aftermath of the 1929 stock-market crash and the Great Depression. Its role is to protect investors, maintain fair and orderly markets, and support capital formation. In an IPO, the SEC does not decide whether the company is a good investment or set the market price; it focuses on whether required information is disclosed accurately and completely.

A common mix-up is FINRA, which regulates broker-dealers and oversees certain activities involving securities firms. The Treasury Department handles federal finances and economic policy, while the Federal Reserve conducts monetary policy and supervises parts of the banking system. The SEC is the central federal securities regulator involved in the IPO registration process.