Securities and Exchange Commission (SEC), USA

The United States Securities and Exchange Commission or the US SEC is a regulatory body within the USA that is tasked with the regulation of securities markets within the country.

It was established in 1934 as per the US SEC Act 1934 and the Securities Act 1933.

Missions of the SEC

The SEC has been mandated to maintain three missions.

  1. Protect investors and prevent fraud.
  2. Maintain fair, orderly, and efficient securities markets.
  3. Foster capital formation.

Divisions of the SEC

  • Corporation Finance: This branch sees the regulation of public companies. It also manages the information portal of the SEC, called EDGAR.
  • Trading and Markets: This branch oversees all the self-regulatory bodies like the FINRA, Municipal Securities Rulemaking Board
  • Investment Management: This branch oversees the regulations of all registered investment managers like Mutual Funds, ETFs, and others.
  • Enforcement: This is the branch that sends violation notices, files charges, and fights cases against all the suspected violators.
  • Economic and Risk Analysis: This is the SEC’s think tank that provides them with policy insights, data, and analysis.
  • Examinations: This branch is responsible for finding out all the violations under the SEC Act.

List of SEC Chairman

The role of the SEC Chair is to lead the agency in enforcing federal securities laws, protecting investors, maintaining fair markets, and overseeing public company disclosures.

Here is a list of all past and present Chairmen of the U.S. SEC, from the agency’s founding in 1934 to the present:

SEC Chairmen (1934 – Present)

  1. Joseph P. Kennedy (1934–1935)
  2. James M. Landis (1935–1937)
  3. William O. Douglas (1937–1939)
  4. Jerome N. Frank (1939–1941)
  5. Edward C. Eicher (1941–1942)
  6. Ganson Purcell (1942–1946)
  7. Robert E. Healy (1946–1947)
  8. Harry A. McDonald (1947–1949)
  9. Paul G. Porter (1949–1953)
  10. Ralph H. Demmler (1953–1955)
  11. J. Sinclair Armstrong (1955–1957)
  12. Edward N. Gadsby (1957–1961)
  13. William L. Cary (1961–1964)
  14. Manuel F. Cohen (1964–1969)
  15. Hamer H. Budge (1969–1971)
  16. William J. Casey (1971–1973)
  17. G. Bradford Cook (1973)
  18. Ray Garrett Jr. (1973–1975)
  19. Roderick M. Hills (1975–1977)
  20. Harold M. Williams (1977–1981)
  21. John S. R. Shad (1981–1987)
  22. David S. Ruder (1987–1989)
  23. Richard C. Breeden (1989–1993)
  24. Arthur Levitt (1993–2001)
  25. Harvey Pitt (2001–2003)
  26. William H. Donaldson (2003–2005)
  27. Christopher Cox (2005–2009)
  28. Mary Schapiro (2009–2012)
  29. Elisse B. Walter (2012–2013)
  30. Mary Jo White (2013–2017)
  31. Jay Clayton (2017–2020)
  32. Elad L. Roisman (Acting, 2020–2021)
  33. Allison Herren Lee (Acting, 2021)
  34. Gary Gensler (2021– Jan 20, 2025)
  35. TBD

Fines Collected by Year

The SEC reports its collections usually around November every year for each preceding fiscal year. The fiscal year in the USA is counted from July 1 of a certain year (say 2024) to June 30 of the next year (i.e., 2025).

The SEC penalties are collected by the Department of Enforcement and are received under two heads: penalties and disgorgement.

  • Penalties refer to the fines levied on anyone when they breach a security law.
  • Disgorgement is the seizure of profits that are obtained by violating security laws.

Below are the fines collected by the SEC in the last few years:

  • FY 2018-19
    • Total:
    • Penalties:
    • Disgorgement:
  • FY 2019-20
    • Total:
    • Penalties:
    • Disgorgement:
  • FY 2021-22
    • Total:
    • Penalties:
    • Disgorgement:
  • FY 2022-23
    • Total:
    • Penalties:
    • Disgorgement:
  • FY 2023-24
    • Total:
    • Penalties:
    • Disgorgement:

Topics Related To The SEC

Howey Test

The Howey Test is a list of instructions given by the US Supreme Court which mentions the process to determine if a “financial asset” is a security or not.

It has four major rules for classifying something as security all of which should be satisfied to classify an asset as a security.

  1. The financial asset should seek investments from others.
  2. Investment should be in a “Common Enterprise”.
  3. For the generation of profits.
  4. The profits should arise from the efforts of people other than investors.

The US Securities and Exchanges Commission

The US Securities and Exchanges Commission (SEC) is an authority that regulates the US Securities Markets as per the US SEC Act of 1934.

The SEC Act 1934

The United States Securities and Exchange Commission Act of 1934 established a list of rules and regulations to be followed by the US SEC to regulate securities markets within the United States of America.

Securities Act 1933

The US Securities Act of 1933 lays down the basis of investor protection. It resulted in the creation of the US SEC in 1934.

Dhirendra Das

Dhirendra Das

Dhirendra is a seasoned SEO expert specializing in crypto, blockchain, and Web3, with a strong background as a trader and investor since 2015. He holds a B.Tech and dual MBAs in Finance and Marketing, bringing both technical and financial insights to his work. Dhirendra has written thousands of articles for leading crypto media outlets, establishing a respected voice in crypto and blockchain technology. His deep industry knowledge and practical experience empower readers with reliable, up-to-date content that fosters informed decision-making in rapidly evolving digital asset markets.

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