SEC

The U.S. Securities and Exchange Commission (SEC) is a federal agency established in 1934 to enforce securities laws and regulate the securities industry. Its primary mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The SEC oversees a wide range of financial activities, including the issuance and trading of stocks, bonds, and other securities, ensuring that companies provide accurate and transparent information to investors. This regulatory oversight is essential in maintaining trust in the financial markets and preventing fraudulent activities.

In the rapidly evolving cryptocurrency space, the SEC plays a significant role in determining whether certain digital assets qualify as securities under U.S. law. The agency uses the Howey Test to assess whether an investment involves a common enterprise with an expectation of profits derived from the efforts of others. If a cryptocurrency or token sale is deemed a security, it must comply with the SEC's regulations, including registration requirements and investor protections. This has led to increased scrutiny of initial coin offerings (ICOs), token sales, and decentralized finance (DeFi) projects.