Federal securities laws are designed to protect investors in the United States from fraud, manipulation and other abuses of the financial markets. These regulations were created by Congress through a series of acts including the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). They are enforced by both state and federal agencies such as the SEC or FINRA, which is responsible for regulating broker-dealers.
The primary focus of these laws is on disclosure concerning investments offered to potential purchasers. Companies that offer stocks must register with either their local state regulators or with the SEC before offering any security for sale. The registration process requires companies to disclose significant information about themselves so that potential buyers can make informed investment decisions prior to investing. This includes providing detailed information about business operations, finances, management personnel and related topics associated with their businesses such as risk factors they may face if they choose to invest in those securities offerings.
In addition to requiring companies who wish sell securities offer full disclosure regarding all aspects pertaining thereto, Federal Security Laws also impose certain restrictions on how individuals may buy/sell shares in publically traded companies like Bitcoin & Cryptocurrency exchanges platforms.. For instance: 1) Only accredited investors – defined under Regulation D Rule 501(a)-may purchase unregistered private placements; 2) Those looking at purchasing IPO’s need meet necessary suitability requirements set forth within Reg A+; 3) When trading highly speculative derivatives contracts like futures contracts stringent margin requirements have been established 4) All firm members involved in trading activities must pass rigorous background checks conducted by FINRA 5 ) Furthermore day traders should be aware rules have been enacted preventing them from executing trades based upon material nonpublic information obtained inside sources – otherwise known stock market insider trading rules .
Finally it important note cryptocurrency exchanges platforms largely unregulated due current lack clear regulatory guidance surrounding digital assets class however recent reports suggest this could change near future given increasing scrutiny virtual currencies coming various governmental entities around world
