Which U.S. stock-market crash followed the 1907 panic and helped prompt the creation of the SEC?

The U.S. stock-market crash that helped prompt the creation of the SEC was the Wall Street Crash of 1929.

The crash unfolded in October 1929 after a speculative boom in American shares. Major selling occurred on Black Thursday, Black Monday, and Black Tuesday. The collapse damaged investor confidence and exposed weaknesses in securities disclosure, market practices, and financial oversight.

The Securities and Exchange Commission was created in 1934 under the Securities Exchange Act. Its establishment was part of a broader New Deal response to the crash and the banking and economic crises that followed. The SEC’s responsibilities included enforcing federal securities laws and regulating important parts of the U.S. securities markets.

The Panic of 1907 is a different event. It helped demonstrate the need for a U.S. central bank and contributed to the creation of the Federal Reserve in 1913. Thus, the 1907 panic is linked to the Federal Reserve, while the 1929 crash is linked to the later SEC.