U.S. Securities and Exchange Commission

U.S. Securities and Exchange Commission
Agency name	U.S. Securities and Exchange Commission
Formed	02 July 1934
Jurisdiction	Federal government of the United States
Headquarters	Washington, D.C.
Employees	4,301 (2020)
Chief1 name	Gary Gensler
Chief1 position	Chair
Chief2 name	Hester Peirce
Chief2 position	Commissioner
Chief3 name	Caroline Crenshaw
Chief3 position	Commissioner
Chief4 name	Mark Uyeda
Chief4 position	Commissioner
Chief5 name	Jaime Lizárraga
Chief5 position	Commissioner
Website	https://www.sec.gov

U.S. Securities and Exchange Commission. The SEC is an independent federal agency, established by Congress in the aftermath of the Wall Street Crash of 1929, to restore public confidence in capital markets. Its primary mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The agency enforces federal securities laws and regulates key participants in the securities world, including stock exchanges, broker-dealers, investment advisers, and public companies.

History

The agency was created by the Securities Exchange Act of 1934, a cornerstone of President Franklin D. Roosevelt's New Deal legislative response to the Great Depression. Its formation was heavily influenced by the findings of the Pecora Commission, which exposed widespread fraudulent practices on Wall Street. The first chairman was Joseph P. Kennedy Sr., appointed by Roosevelt. Major subsequent legislation, including the Securities Act of 1933, the Investment Company Act of 1940, and the Sarbanes-Oxley Act of 2002, has expanded its authority. The agency played a central role in the regulatory response to the financial crisis of 2007–2008, leading to the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act.

Organization and structure

The agency is headquartered in Washington, D.C. and maintains 11 regional offices across the United States, including major offices in New York City and Los Angeles. It is led by five commissioners appointed by the President and confirmed by the Senate, with no more than three belonging to the same political party. The chair, such as current head Gary Gensler, serves as the agency's chief executive. Major operating divisions include the Division of Corporation Finance, the Division of Trading and Markets, the Division of Investment Management, and the Division of Enforcement. The Office of the Chief Accountant and the Economic and Risk Analysis division provide critical support.

Core functions and responsibilities

A principal function is requiring public companies to disclose meaningful financial and other information to the public through the EDGAR system, providing a common pool of knowledge for all investors. It registers and regulates entities such as broker-dealers, investment advisers, and stock exchanges like the New York Stock Exchange and Nasdaq. The agency reviews and authorizes registration statements for securities offerings and oversees key market participants including credit rating agencies and SIPC. It also interprets federal securities laws and issues new rules under the authority granted by statutes like the Securities Act of 1933.

Regulatory and enforcement actions

The Division of Enforcement investigates potential violations of securities laws and can bring civil actions in federal court or before an administrative law judge. Notable enforcement actions and settlements have involved major corporations like Enron, WorldCom, and, following the 2008 crisis, firms such as Goldman Sachs and Bank of America. The agency also operates a robust whistleblower program that provides monetary awards for original information. It works closely with other law enforcement and regulatory bodies, including the Department of Justice, the FINRA, and international counterparts.

Criticisms and controversies

Critics, often from the financial industry and some members of Congress, have argued that the agency's regulations can be overly burdensome and stifle innovation and capital formation. It has faced scrutiny for perceived failures, such as missing the Bernard Madoff Ponzi scheme despite prior investigations. Its approach to regulating new technologies, including cryptocurrency and ICOs, has been a subject of intense debate and legal challenges from entities like Ripple Labs. The agency's use of administrative law judges for enforcement proceedings has also been challenged in courts, including the Supreme Court of the United States.

List of chairs

* Joseph P. Kennedy Sr. (1934–1935) * William O. Douglas (1937–1939) * William J. Casey (1971–1973) * Roderick M. Hills (1975–1977) * John S. R. Shad (1981–1987) * Richard Breeden (1989–1993) * Arthur Levitt (1993–2001) * Harvey Pitt (2001–2003) * William H. Donaldson (2003–2005) * Christopher Cox (2005–2009) * Mary Schapiro (2009–2012) * Elisse B. Walter (2012–2013) * Mary Jo White (2013–2017) * Jay Clayton (2017–2020) * Gary Gensler (2021–present)

Category:Independent agencies of the United States government Category:Financial regulatory authorities of the United States Category:1934 establishments in the United States