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Securities and Exchange Commission

Securities and Exchange Commission

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The Securities and Exchange Commission or SEC was formed during The Great Depression as a result of the public perception that Wall Street was unfair to the ordinary man and had contributed to the national economic disaster. This legislation was part of Roosevelt`s First One Hundred Days.Prior to the Securities Act of 1933, states had been regulating securities issued within their borders, starting with Kansas in 1911. By 1933, every state except Nevada had such a law on its books.The Securities and Exchange Commission was created by the Securities and Exchange Commission Act of 1934. The SEC was given the task of enforcing the Securities Act of 1933 and also regulating all of the exchanges of such securities.

Securities and Exchange Commission (SEC)

The US Securities and Exchange Commission, or SEC, is an independent agency of the US federal government that is responsible for implementing federal securities laws Sarbanes Oxley Act The Sarbanes-Oxley Act is a U.S. federal law that aimed to protect investors by making corporate disclosures more reliable and accurate. and proposing securities rules. It is also in charge of maintaining the securities industry and stock and options exchanges Types of Markets - Dealers, Brokers, Exchanges Markets include brokers, dealers, and exchange markets. Each market operates under different trading mechanisms, which affect liquidity and control. The different types of markets allow for different trading characteristics, outlined in this guide , as well as regulating electronic securities markets and other activities in the country.

With headquarters in Washington, D.C. and operating in 11 regional offices throughout the US, the SEC aims to provide protection to investors Investing: A Beginner's Guide CFI's Investing for Beginners guide will teach you the basics of investing and how to get started. Learn about different strategies and techniques for trading, and about the different financial markets that you can invest in. and ensure that markets are fair, efficient, and in order. It also strives to create a market environment that people can trust.

History of the Securities and Exchange Commission

Before the creation of the US Securities and Exchange Commission, there were blue sky laws that were enforced at the state level. They were in charge of regulating the sale of securities to protect the investing public against fraud. However, said laws were found to be ineffective.

Congress then passed the Securities Act of 1933 The 1933 Securities Act The 1933 Securities Act was the first major federal securities law passed following the stock market crash of 1929. The law is also referred to as the Truth in Securities Act, the Federal Securities Act, or the 1933 Act. It was enacted on May 27, 1933 during the Great Depression. . the law was aimed at correcting some of the wrongdoings to regulate interstate sale of securities at the federal level, while the Securities Exchange Act of 1934 regulates the sale of securities in the secondary market. The SEC was created by Section 4 of the Securities Exchange Act of 1934, also called the Exchange Act or the 1934 Act, to enforce federal securities laws.

Organizational Setup of the SEC

The Securities and Exchange Commission comprises five Commissioners who are appointed by the US President. One of them is designated as the Chairman of the Commission. The law dictates that no more than three Commissioners may come from the same political party, to ensure non-partisanship.

Here are the five divisions within the SEC:

1. Division of Corporation Finance

This division is responsible for helping the Securities and Exchange Commission in performing its role of overseeing the corporate disclosure of important information to investors. When stock is sold, a corporation is required to adhere to regulations related to disclosure. The Division of Corporation Finance is tasked to review on a regular basis disclosure documents that are filed by corporations. It also helps interpret the rules of the SEC. It likewise gives recommendations related to new adoption rules to the SEC.

2. Division of Trading and Markets

This division assists the SEC in ensuring that markets are fair, orderly, and efficient. It oversees the day-to-day activities of major securities market participants, securities firms, securities exchanges, self-regulatory organizations, clearing agencies, transfer agents, credit rating agencies, as well as securities information processors.

3. Division of Investment Management

The division of Investment Management helps the Securities and Exchange Commission in executing its role of protecting investors and promoting capital formation. It oversees and regulates the country&rsquos investment management industry. It ensures that disclosures about investments such as mutual funds and exchange-traded funds are useful to retail customers. The division also ensures that the regulatory costs are not too high.

4. Division of Enforcement

The division of Enforcement is responsible for the enforcement of securities laws. It gives recommendations on the commencement of investigations of securities law violations. It is also in charge of working closely with law enforcement agencies to take on criminal cases.

5. Division of Economic and Risk Analysis

This division is in charge of protecting investors and keeping markets fair, orderly, and efficient. It also provides economic analyses and data analytics, and interacts with almost all divisions and offices within the Commission.

Related Readings

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  • Types of SEC Filings Types of SEC Filings The US SEC makes it mandatory for publicly traded companies to submit different types of SEC filings, forms include 10-K, 10-Q, S-1, S-4, see examples. If you are a serious investor or finance professional, knowing and being able to interpret the various types of SEC filings will help you in making informed investment decisions.

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Records of the Securities and Exchange Commission [SEC]

Established: As an independent agency by the Securities Exchange Act of 1934 (48 Stat. 881), June 6, 1934.

Predecessor Agencies:

Functions: Administers federal laws regulating the distribution of securities to the public and the subsequent trading of such securities.

Finding Aids: Preliminary Inventory in National Archives microfiche edition of preliminary inventories.

Related Records:
Records of the Temporary National Economic Committee, RG 144.
Records of the Commodity Futures Trading Commission, RG 180.

266.2 Records of the Corporation Finance Division

History: Securities Division established in FTC, June 1933, pursuant to the Securities Act of 1933 (48 Stat. 78), May 27, 1933. FTC securities-related responsibilities assigned to newly established SEC, 1934 (see 266.1.1), with FTC Securities Division abolished and functions to Registration Division, SEC, effective September 1, 1934. Registration Division acquired, August 1939, administrative responsibility for the Trust Indenture Act of 1939 (53 Stat. 1149), August 3, 1939. Consolidated with Reorganization Division and Investment Company Section of Investment Company Division to form Corporation Finance Division, August 24, 1942, responsible for administering the Securities Act of 1933 the Trust Indenture Act of 1939 corporate reorganization portions of the Bankruptcy Act of 1898 (30 Stat. 544), July 1, 1898, as amended and the Investment Company Act of 1940 (54 Stat. 789), August 22, 1940.

Textual Records: Numbered case files containing registration statements filed by issuers of securities in accordance with sections 6-8 of the Securities Act of 1933, and related correspondence, 1933-83 (3,576 ft.) with index, 1933-45 (2 ft.).

Motion Pictures : Developing Our Natural Resources, produced by the National Boston Montana Mines Company, and separated from the case files described above, n.d. (3 reels).

Machine-Readable Records: Information registered by issuers of securities in accordance with sections 6-8 of the Securities Act of 1933 ("Registered Offerings Statistics [ROS] System"), 1970-88, with supporting documentation (8 data sets). See also 266.7.

266.3 Records of the Trading And Exchange Division

History: Established July 1934, with responsibility for administering the Securities Exchange Act of 1934. Pursuant to abolition of Investment Advisers Section of Investment Company Division, August 24, 1942, acquired additional responsibility of administering the Investment Advisers Act of 1940 (54 Stat. 847), August 22, 1940.

Textual Records: Numbered case files containing registration statements filed by broker-dealers and securities exchanges in accordance with sections 12 and 13 of the Securities Exchange Act of 1934 and pertinent sections of the Securities Acts Amendments of 1964, and related correspondence, 1934-77 (1,613 ft.). Sample of investigative case files, 1934-45, with index.

Machine-Readable Records: Institutional Investors Study, containing information on securities holdings and transactions of all types of institutional investors, 1964-70, with supporting documentation (21 data sets). See also 266.7.

266.4 Records of the Corporate Regulation Division

Textual Records: Case files, arranged alphabetically by name of individual or organization, relating to reorganization proceedings under Chapters IX and XI of the Bankruptcy Act ("206 Files"), 1938-75 (89 ft.). Numbered case files relating to reorganization proceedings under Chapter X, 1938-76 (833 ft.), and Chapter XI, 1939-75 (8 ft.), of the Bankruptcy Act. Records relating to federal court decisions on corporate reorganization ("R Files"), 1950-65.

266.5 Other Records

Textual Records: Portion of SEC central file (mainly file numbers beginning with 111, 124, and 140) dealing with the various laws administered by SEC, 1933-64 (bulk 1940-60, 18 ft.). Records relating to the SEC investigation of, and report on, Brewster Aeronautical Corporation, 1937-44. "Sofina" report, 1942.

266.6 Motion Pictures (General)

266.7 Machine-Readable Records (General)

Bibliographic note: Web version based on Guide to Federal Records in the National Archives of the United States. Compiled by Robert B. Matchette et al. Washington, DC: National Archives and Records Administration, 1995.
3 volumes, 2428 pages.

This Web version is updated from time to time to include records processed since 1995.

About the SEC Historical Society

The Securities and Exchange Commission Historical Society, through its virtual museum and archive at www.sechistorical.org, shares, preserves and advances knowledge of the history of financial regulation. Get connected for updates on new materials and upcoming programs in the museum.

Founded in 1999, the Society is a 501(c)(3) non-profit organization, independent of and separate from the U.S. Securities and Exchange Commission. The virtual museum and archive is built and exhibited independent of any SEC oversight.

The SEC Historical Society is funded solely by gifts and grants from the private sector, and receives no government funding. Over 85% of annual contributions are used for the virtual museum and archive's building and outreach. Give today to keep the museum current, independent and growing.

The Society's Annual Reports include audited financial statements, narrative of activities and list of donors for its fiscal year of January 1 through December 31.

The SEC Historical Society is governed by an independent Board of Trustees and administered by its staff.

The Board of Advisors is a corps of committed volunteer leaders who, while not subject to the governance and fiduciary responsibilities of the Board of Trustees, work individually and as a group to advance the mission and work of the Society.

The SEC Historical Society's Code of Ethics states its policies and procedures for maintaining the integrity of the organization. Click here to submit any legal or ethical concerns about the Society. All submissions will be held in confidence.


The Financial Industry Regulatory Authority is the largest independent regulator for all securities firms doing business in the United States. FINRA's mission is to protect investors by making sure the United States securities industry operates fairly and honestly. In December 2019, FINRA oversaw 3,517 brokerage firms, 153,907 branch offices and approximately 624,674 registered securities representatives. [2] [3]

FINRA has approximately 3,400 employees and operates from Washington, D.C. and New York City, with 20 regional offices around the Unites States. [2]

FINRA offers regulatory oversight over all securities firms that do business with the public, plus those offering professional training, testing, and licensing of registered persons, arbitration and mediation, market regulation by contract for the New York Stock Exchange, the NASDAQ Stock Market, Inc., the American Stock Exchange LLC, and the International Securities Exchange, LLC and industry utilities, such as Trade Reporting Facilities and other over-the-counter operations.

FINRA was formed by a consolidation of the member regulation, enforcement, and arbitration operations of the New York Stock Exchange, NYSE Regulation, Inc., and NASD. The merger was approved by the United States Securities and Exchange Commission (SEC) on July 26, 2007. [4]

The NASD was founded in 1939 and was registered with the SEC in response to the 1938 Maloney Act amendments to the Securities Exchange Act of 1934, which allowed it to supervise the conduct of its members subject to the oversight of the SEC. In 1971, NASD launched a new computerized stock trading system called the National Association of Securities Dealers Automated Quotations (NASDAQ) stock market. The NYSE and AMEX stock exchanges merged in 1998. Two years later, the NASDAQ underwent a major recapitalization and became an independent entity from NASD. In July 2007, the SEC approved the formation of a new SRO to be a successor to NASD. The NASD and the member regulation, enforcement and arbitration functions of the New York Stock Exchange were then consolidated into the Financial Industry Regulatory Authority (FINRA). [5]

The FINRA By-Laws provide that the FINRA Board must consist of the chief executive officer of FINRA, the chief executive officer of NYSE Regulation, eleven public governors, and ten industry governors, including a floor member governor, an independent dealer/insurance affiliate governor, an investment company affiliate governor, three small firm governors, one mid-size firm governor, and three large-firm governors. The small firm governors, mid-size firm governor, and large-firm governors are elected by members of FINRA according to their classification as a small firm, mid-size firm, or large firm. [6] [7]

FINRA regulates trading in equities, corporate bonds, securities futures, and options. All firms dealing in securities that are not regulated by another SRO, such as by the Municipal Securities Rulemaking Board (MSRB), are required to be member firms of the FINRA. [8]

As part of its regulatory authority, FINRA periodically conducts regulatory exams of its regulated institutions. FINRA recently released its tenth annual Regulatory and Examinations Priorities Letter for 2015, which impacts broker-dealers as well as their affiliated insurance companies and banks. In its Regulatory and Examinations Priorities Letter for 2015 FINRA has identified variable annuities as a significant area of focus for exams in 2015 and has pointed out particular elements of sales practices that will be reviewed. [9]

FINRA licenses individuals and admits firms to the industry, writes rules to govern their behavior, examines them for regulatory compliance, and is sanctioned by the U.S. Securities and Exchange Commission (SEC) to discipline registered representatives and member firms that fail to comply with federal securities laws and FINRA's rules and regulations. It provides education and qualification examinations to industry professionals. It also sells outsourced regulatory products and services to a number of stock markets and exchanges e.g. American Stock Exchange (AMEX) and the International Securities Exchange (ISE). [ citation needed ]

NASD, the predecessor of FINRA, founded the NASDAQ (National Association of Securities Dealers Automated Quotations) stock market in 1971. In 2006, NASD demutualized from NASDAQ by selling its ownership interest. [10]

The NASD, later FINRA, publishes much educational information for the public and has been publishing and disclosing the education and exam requirements for USA based credentials, charters, designations and certifications that are offered by SROs for about a decade. [11]

BrokerCheck disclosures Edit

In 2017, Reuters published a report that showed a significant percentage of brokers with multiple disclosures on their record worked at 48 firms. FINRA could make this list of brokers with unusually high numbers of brokers with multiple disclosures searchable, but they refuse, arguing that hiring brokers with BrokerCheck disclosures is not illegal. [12]

When a March 2020 study revealed that FINRA approves 84% of requests for expungement of BrokerCheck disclosures, Senator Elizabeth Warren addressed FINRA in a letter, stating, ". The study suggests that FINRA's current method of assessing expungement requests-which approves the vast majority of expungement requests-is failing to safeguard information needed for investor protection." [13] [14]

On behalf of state securities regulators, FINRA maintains the Central Registration Depository (CRD), the central database containing records for all firms and individuals involved in the securities industry in the United States. [15]

FINRA had total revenues of US$846.9 million in 2019. [16] [2] [17] FINRA is funded primarily by assessments of member firms' registered representatives and applicants, annual fees paid by members, and by fines that it levies. The annual fee that each member pays includes a basic membership fee, an assessment based on gross income, a fee for each principal and registered representative, and charge for each branch office.

According to a study by Deborah G. Heilizer and Brian L. Rubin, partners at the Washington, D.C. law firm Sutherland Asbill & Brennan LLP, regulators with NASD and NYSE Regulation (later collectively known as FINRA) obtained supersized fines (i.e., fines over US$1 million) in 35 actions taken in 2005. In 2006, however, that number dropped to 19 furthermore, the number of enforcement actions over US$5 million also fell. In 2005, there were seven such actions as opposed to three in 2006. According to the written report, the "data suggest that securities regulators may have retrenched their efforts to regulate through the use of novel theories." [18]

FINRA collected fines against financial firms totaling US$25.9 million in 2008, a third straight annual decline in fines levied by FINRA or one of its predecessor agencies. The 2008 total was 82% below the US$148.5 million in fines collected in 2005. According to FINRA, the fines levied in 2009 were US$47.6 million, declining slightly to US$42.2 million in 2010 and then expanding to US$71.9 million for 2011. [19]

FINRA operates the largest arbitration forum in the United States for the resolution of disputes between customers and member firms, as well as between brokerage firm employees and their firms. This function had been performed by both NASD and NYSE's regulation committee until their merger in 2007 to form FINRA. Each entity had its own set of rules on arbitration procedures. After its creation, FINRA Dispute Resolution harmonized the prior NYSE and NASD rules. [20] ) Virtually all agreements between investors and their stockbrokers include mandatory arbitration agreements, whereby investors (and the brokerage firms) waive their right to trial in a court of law. While arbitration cases are the usual resolution procedure of last resort, class action cases are brought and often permitted to go forward in courts as well, where binding arbitration contracts are sometimes rejected, typically after being ruled unconscionable see Wilko v. Swan. Although the fairness of such mandatory arbitration clauses has been called into question, US federal courts have often found them to be lawful and have generally upheld both the enforceability and result of these arbitrations, except in the case of class actions. [21]

As of May 2011, the pool of arbitrators consisted of 2,854 individuals classified by FINRA as industry panelists and 3,557 individuals classified as non-industry panelists. [22]

In 1987, the United States Supreme Court ruled in Shearson/American Express Inc. v. McMahon that clauses mandating arbitration for disputes under the Securities Exchange Act of 1934 were enforceable. Three years later, it overturned Wilko completely in Rodriguez de Quijas v. Shearson/American Express Inc., extending the arbitration requirement to disputes under the Securities Act of 1933. Thus, many securities disputes are now resolved in arbitration.

For disputes over US$100,000 between customers and member firms, the panel that decides the case generally consists of three arbitrators: one industry (or, at the customer's timely discretion non-industry) panelist, one non-industry panelist, and one non-industry chairperson, according to the Code of Arbitration Procedure for Customer Disputes. [23] For disputes between an employee and member firms, all three arbitrators are industry panelists, according to the industry code. [24] For a given case, the two sides are provided separate lists by FINRA of ten local arbitrators for each category from which each party can strike up to four arbitrators and provide a ranking for the rest. Also provided are ten-year biographies and prior award histories for each arbitrator. FINRA will then provide the parties with the panel members by selecting the highest ranked available arbitrator from each category. [21] [25]

According to FINRA, there were 5,680 cases for arbitration filed in 2010, a decrease from the 7,137 cases filed in 2009. The percentage of cases in which customers are awarded damages has risen slightly from 42% in 2008 to 47–48% in 2010 and 2011. [22] FINRA rates any positive award to a customer as a win for the customer, regardless of the magnitude of losses or legal fees. [26]

FINRA rules do not require parties to be represented by attorneys. A party may also appear pro se, or be represented by a non-attorney in arbitration. However, the third option is not advised since this may be the unauthorized practice of law. [27] Brokerage firms routinely hire attorneys, so a customer who does not can be at a serious disadvantage. One organization whose members specialize in representing customers against brokerage firms in FINRA arbitrations is the Public Investors Arbitration Bar Association (PIABA). [28]

In June 2006, Lewis D. Lowenfels, one of two partners at the New York law firm of Tolins & Lowenfels and co-author of the looseleaf treatise Bromberg and Lowenfels on Securities Fraud and Commodities Fraud, 2d said of the NASD arbitration process: "What started out as a relatively swift and economical process for a public customer claimant to seek justice has evolved into a costly extended adversarial proceeding dominated by trial lawyers and the usual litigation tactics." [26] [29]

Perhaps amidst speculation that the US Congress was contemplating passing legislation [30] preventing mandatory arbitration clauses, FINRA announced in July 2008 that it would be launching a pilot program to evaluate all-public arbitration panels (thus not requiring an industry arbitrator to be on each panel). [31] In February 2011, FINRA announced that it would be making the program permanent. In that announcement, Richard Ketchum, FINRA Chairman and Chief Executive Officer stated "We believe that giving investors the ability to have an all-public panel will increase public confidence in the fairness of our dispute resolution process." [32] There are those, however, who see valid reasons for including an industry arbitrator on each panel. According to Richard Jackson, a principal at the advisor firm of Schlindwein Associates, LLC "It's probably pretty important to have someone on the panel who has specific industry knowledge and past experience in that field to explain some of the complexities that may be at issue," [33]

FINRA does have a broker check system. This system lists the registered and licensed professionals. Those who have had complaints will also remain in the online system. Others who have passed exams, but have let their licenses retire, are not listed in the system if they had a clean record on their FINRA Form U5. [ citation needed ]

Securities and Exchange Commission

This reference report provides an overview of the electronic records of the Securities and Exchange Commission (SEC) in NARA's custody. Full descriptions of the series and data files listed in this report are in the National Archives Catalog. Users can search the Catalog by title, National Archives Identifier, type of archival material, or keyword.

Some of the series and files listed in this report are accessible online:

  • Download - This is a link for downloading the files and documentation from the Catalog. For more details on downloading files, please review the frequently asked questions (FAQs).
  • Search - This is a link for searching the records via the Access to Archival Databases (AAD) resource.

All of the files are also available for a cost-recovery fee. For more information see: Ordering Information for Electronic Records.

Record Group 266: Records of the Securities and Exchange Commission

  • Broker Dealer Directory System (BDD) Files
    National Archives Identifier:596295
    Online Access:Download

    Corporation Index System (CIN) Files
    National Archives Identifier:634590
    Online Access: Download

This series contains records of the appointments, charter, presentations and meetings of the Advisory Committee on Small and Emerging Companies, including meeting agendas, minutes and recommendations.

Files: 76 data files
Technical Documentation: varies per data file (1,294 pages total) supplemental documentation including reports and recommendations from the study

    Investment Advisers Directory System (IA) Files
    National Archives Identifier:596316
    Online Access: Download

    Investment Trust Company Files (IVT)
    National Archives Identifier:614738
    Online Access:Download

    Records on Trading of Securities by Corporate Insiders (ORS)
    National Archives Identifier:572696
    Online Access: DownloadSearch

  • July 11, 1978 - December 10, 1986 101 data files (separate monthly data files)
  • July 11, 1986 - April 10, 1991 1 data file
  • April 11, 1991 - January 10, 1994 33 data files (separate monthly data files)
  • January 11, 1994 - October 10, 1997 1 data file
  • October 11, 1997 - January 10, 1998 1 data file
  • January 11, 1998 - March 12, 2001 1 data file

    Records About the Proposed Sale of Unregistered Securities by Individuals (PSS)
    National Archives Identifier:567822
    Online Access: DownloadSearch

  • January 4, 1972 - December 30, 1993 (History File) (few records for 1983 and 1985 no records for 1986 or 1987)
  • 1972-1984 (overlaps with the History File excludes most of 1983 data)
  • January 3, 1994 - January 31, 1994
  • May 11, 1994 - September 30, 1999
  • January 3, 1999 - September 29, 2000

    Registered Offering Statistics (ROS) File
    National Archives Identifier:597825
    Online Access: Download

The SEC's dissemination contractor, Thomson Reuters, offers reference services for more recent releases of data. The telephone number is 1-800-638-8241. This information is meant to assist researchers and implies no endorsement of their services by NARA.

Contact Us
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This page was last reviewed on May 21, 2021.
Contact us with questions or comments.

A brief history of the US Securities and Exchange Commission (SEC) review of the Bitcoin ETF proposal

The history of bitcoin ETFs and the US Securities and Exchange Commission (SEC) has been entangled for a long time. As early as March 2017, after three years of review, the SEC finally rejected the Bitcoin ETF application filed by the Winklevoss brothers, saying that the bitcoin market was too easy to manipulate, fluctuating, and difficult to monitor.

On March 29 of the same year, the SEC rejected the listing application of the Bitcoin ETF submitted by SolidX in 2016. On April 27th, the SEC unexpectedly announced its agreement to review the listing application of the Winklevoss Bitcoin ETF, but the results were still ruthlessly rejected.

When the time fast forwarded to April 2019, the SEC still did not approve any listing application for a Bitcoin ETF, and the comments on its most recent public inquiry were still largely negative.

For ordinary observers and mass investors who want Bitcoin ETFs to provide more legitimacy for cryptocurrencies, this lack of significant progress can be frustrating.

But despite this, the SEC’s position has softened from March 2017 to the present, and even SEC members have publicly announced that they expect the Bitcoin ETF to be approved sooner or later.

Therefore, we also have good reason to believe that day, although in the long run, the SEC is indeed “not friendly” to cryptocurrencies.

2017: SEC claims Bitcoin is easy to maneuver, volatility and lack of supervision

On June 30, 2016, the BATS BZX Exchange submitted a proposal to the US Securities and Exchange Commission (SEC) to allow the BATS BZX exchange to list and trade the Bitcoin ETF of the Winklevoss brothers.

If the proposal is approved, it means that the Winklevoss brothers’ Bitcoin ETF will become the world’s first Bitcoin exchange fund (ETF) approved to be listed on a fully regulated stock exchange. That way, more investors can invest in Bitcoin without having to buy a bitcoin spot (just buy the corresponding index). This will fundamentally reduce the investment threshold and investment channels of Bitcoin, and at the same time make Bitcoin more legitimized and formal.

Undoubtedly, this move does mark a big step in the cryptocurrency to the mainstream economy. However, after a long period of deliberation and consultation, the SEC rejected the proposal.

On March 10, 2017, the SEC issued a public statement explaining its reasons for rejecting the proposal, the most important of which is “the difficulty of preventing price manipulation and market fraud in the bitcoin market”.

Just two weeks after the results of this review were announced, the SEC rejected another similar proposal submitted by the New York Stock Exchange’s parent company, the Intercontinental Exchange, and the explanation was exactly the same as before.

In addition, the public also sent a lot of comments to the SEC on the proposal for the listing of special currency ETFs, some of which have some in-depth insights.

For example, Mark Williams, a professor of finance at Boston University, wrote a seven-page letter detailing a long list of reasons why Bitcoin ETFs should not be listed.

These reasons include many shortcomings in the bitcoin market, such as: irregular trading execution, low transaction volume, lack of liquidity, excessive price volatility, unregulated exchanges, and high bankruptcy risk of exchanges.

It can be said that 2017 is not a “very friendly” year for the Bitcoin ETF.

However, although many people are extremely opposed to the Bitcoin ETF, some researchers outside the cryptocurrency industry are more optimistic. James Angel, an associate professor of finance at Georgetown University, said: “Transferring bitcoin trading activities to regulated exchanges will be more conducive to improving price discovery and reducing the likelihood of price manipulation and market fraud.”

Similarly, Professor Campbell Harvey of Duke University also stated that “allowing the Bitcoin ETF to be listed on the New York Stock Exchange will be an indication that the SEC will protect its investors and maintain a fair, orderly and effective securities market. The greatest commitment to the goal of facilitating capital formation.”

In fact, six economists from six other top universities in the United States have signed this statement from Professor Harvey. This actually shows one point objectively:

Although the US Securities and Exchange Commission still cannot approve a Bitcoin ETF, there are actually quite a few people who support the Bitcoin ETF.

2018: More and more support from the wider industry

At the end of 2017, there was a very real feeling that the SEC had been treating the Bitcoin market with a skeptical eye, and the comments they received from people outside the cryptocurrency industry strengthened them even more. Skeptical attitude towards the bitcoin market.

However, this “vicious circle” began to change gradually in 2018, although the SEC is still continuing to reject the listing application of the Bitcoin ETF, but the SEC has begun to have opposition voices.

This is especially evident in July 2018. At that time, the SEC rejected the Winklevoss brothers’ Bitcoin ETF application for the second time. The review again stated that the proposal failed to prove that it met the rules “to prevent fraud and market manipulation.” However, the SEC unexpectedly added a disclaimer to the review and wrote: “Although the SEC does not approve of this proposal, the SEC emphasizes that their disagreement does not depend on Bitcoin or the broader blockchain technology. As an assessment of whether an innovation or investment has utility or value.”

Laws Governing the Securities Industry

There are two primary laws governing the securities industry: the Securities Act of 1933, and the Securities Exchange Act of 1934.

Securities Act of 1933

The first of the two major laws governing the securities industry, the Securities Act of 1933, is often called the “truth in securities law.” It is made up of two basic objectives:

  • It requires that investors receive significant information about securities that are being offered for sale to the public.
  • It prohibits deceit, fraud, and other misinterpretations concerning the sale of securities.

The point of these objectives is to ensure that important financial information is properly disclosed when securities are registered with the SEC. This information enables investments to make informed decisions about whether or not to purchase a company’s securities. Investors who end up purchasing a security and suffering a loss are protected by the recovery rights afforded to them by the SEC, so long as they can prove that there was an inaccurate disclosure of important information that would have potentially swayed their decision to purchase that security.

Securities Exchange Act of 1934

The second of the two major laws governing the securities industry, the Securities Exchange Act of 1934, is the law responsible for the creation of the SEC. This law gives the SEC its power to oversee all of the aspects of the securities industry. For example, the Securities and Exchange Commission has the power to register, regulate, and supervise everything from brokerage firms to self-regulatory organizations (SROs). SROs include the New York Stock Exchange and the Nasdaq Stock Market. This law also provides the SEC with the disciplinary powers necessary to identify and prohibit misconduct in the marketplace.

The Securities and Exchange Commission (SEC) Ghana, is the apex regulatory body of the Securities Industry in Ghana. It is backed by and operates with the following legislation:

Securities Industry Law (SIL) 1993, PNDCL 333

Securities Industry (Amendment) Act (SIA) 2000, Act 590

Legislative Instruments (LI 1695 and LI 1728)

Securities Industry Act, 2016(Act 929)

The Commission was established in accordance with the SIL 1993, PNDCL 333. It was called the “Securities Regulatory Commission under the SIL, PNDCL 333. It operated under the supervision of the Governor, Bank of Ghana. The Bank of Ghana set up a Capital Market Desk to regulate the Industry.

The Securities Regulatory Commission was formally set up in September 1998 as an independent regulator of the capital market in Ghana.

It became the Securities and Exchange Commission by an act of Parliament, Securities Industry Amendment Act, 2000(Act 590).

A new Act, Securities Industry Act, 2016(Act 929) was enacted to expand the powers of the SEC. This new law replaces the Securities Industry Law, 1993(PNDCL 333).

Check Out the Investment: Is It Registered with the SEC?

Take these steps to check whether a recommended investment is registered with the Securities and Exchange Commission (SEC):

Step 1: Ask the person offering the investment, "Is this investment registered with the SEC?"

If the answer is no, ask why the investment is not registered. Not all securities offerings must be registered with the SEC—such as those issued by municipal, state and federal governments. The SEC also provides exemptions for certain intrastate offerings and small public and private offerings under a rule known as Regulation D. For more information, read the SEC's Microcap Stock: A Guide for Investors.

Step 2: If yes, then use the chart below to help you check that this is in fact the case.

Call the SEC's Office of Investor Education and Advocacy toll-free at (800) SEC-0330 if you have trouble using EDGAR or have questions about a company or investment.

  • Free public access to corporate information, including registration statements, prospectuses, annual reports with audited financial statements on Form 10-K and quarterly reports on Form 10-Q.
  • Information about recent corporate events reported on Form 8-K.
  • Confirmation of whether a company is using an exemption under Regulation D.
  • Read the SEC's tips for researching investments using EDGAR and other tools.
  • Be alert to changes in the company's name and trading symbol, reported through SEC Form 8-K.
  • Check if the company is filing current reports by looking for a 10-K report within the past year.
  • Information about the investment beyond registration status, such as whether a promotion appears in violation of state securities law.
  • Ask if your state regulator is aware of any problems associated with the company or the type of investment.
  • You can also contact the North American Securities Administrators Association at (202) 737-0900.

Keep in mind that registration with the SEC does not guarantee that an investment will be a good one or immune to fraud. Likewise, lack of registration does not mean the investment lacks legitimacy. The critical difference is the extreme level of risk you assume when you invest in a company about which little or no information is publicly available. SEC registration carries a number of advantages for investors, including disclosure of financial and other information that can help investors assess whether to invest in a company's securities.

To check out the registration of the following types of investments, follow these steps:


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