SEC’s Jurisdiction
The United States Securities and Exchange Commission (SEC) is the primary regulator of securities transactions in the United States. The SEC has jurisdiction over all public companies, registered broker-dealers, investment advisers, mutual funds, and other financial entities that are involved in securities transactions or providing services related to them.
The SEC’s authority extends to a wide range of activities including trading securities on secondary markets like stock exchanges; issuing initial public offerings (IPOs); underwriting securities; recommending or advising investors on security investments; managing private funds; and protecting against fraudulent practices such as insider trading.
In addition to regulating the sale of stocks, bonds and other investments, the SEC also oversees cryptocurrency assets. Specifically, it enforces investor protection rules for cryptocurrencies such as Bitcoin and Ethereum that trade on national exchanges. These rules include disclosure requirements for ICOs (Initial Coin Offerings), registration requirements for crypto asset managers who offer advice about investing in digital coins/tokens, anti-fraud provisions similar to those used for traditional stocks and bonds, as well as periodic reporting requirements intended to protect investors from fraudsters who may be manipulating prices through pump & dump schemes or other nefarious tactics.
Finally – though not within its main purview – some states have begun passing laws that grant certain agencies oversight over digital currency businesses operating within their borders which could eventually fall under the umbrella of SEC jurisdiction if they become large enough players in U.S.-based markets.
