We've been hearing about the SEC a lot lately and seeing the impact they have on the world of cryptocurrency. So let's find out more about them?
SEC: history of appearance
The Commission was created in accordance with the Securities Exchange Act of 1934. The first chairman of the commission was Joseph Kennedy, the father of future President John F. Kennedy. In total, in the history of the commission there have already been 33 chairmen - not much less than the number of presidents in the entire two hundred and fifty-year American history. The average service life is therefore less than three years.
What does the SEC do?
The Commission's area of interest includes all transactions with securities in the United States. The main task is to ensure transparency of transactions, counteracting fraudulent schemes and maintaining investor confidence in the stock market.
To achieve this, the regulator not only sets the rules for registering securities, but also monitors their implementation. A government agency rarely simultaneously engages in rule-making and law enforcement. The commission also monitors the circulation of stocks and bonds, the activities of brokers, the trading operations of private investors and investment companies, and monitors the emergence of bubbles and signs of other manipulations.
From year to year, the SEC considers many violations. The most common of them:
concealment (or provision) of implausible and/or distorting information about securities
theft of funds or other valuable assets of the client
manipulation of market prices
accounting fraud
insider trading in securities
sale of securities with improper registration
other illegal actions of brokers towards clients
Today, with the advent of cryptocurrency, the SEC has one more place to look after. But so far it only brings losses. Or is this done on purpose?
Let's think in the comments