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Securities Exchange Act of 1934

1934

15 U.S.C. § 78a et seq.

📌 Link to the Text of the Act

Read the statute (15 U.S.C. § 78a et seq.)

📌 Why It Was Done

The Act created the Securities and Exchange Commission (SEC) and gave it authority to regulate securities markets, broker-dealers, and ongoing disclosures by public companies.

📌 Pre-existing Law or Constitutional Rights

The Securities Act of 1933 regulated initial offerings but did not cover trading of securities after issuance. The 1934 Act filled this gap and established a permanent federal regulator.

📌 Overreach or Proper Role?

Supporters see it as critical to maintaining fair, orderly, and transparent markets. Critics argue some SEC rules are overly burdensome and slow innovation in capital markets.

📌 Who or What It Controls

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    Public companies (must file periodic reports, e.g., 10-K, 10-Q, 8-K)
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    Securities exchanges (NYSE, NASDAQ, etc.)
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    Brokers, dealers, and investment advisers
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    Insiders (subject to antifraud and anti-manipulation rules)

📌 Key Sections / Citations

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    15 U.S.C. § 78j(b) (Rule 10b-5 – antifraud)
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    15 U.S.C. § 78m (reporting requirements)
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    15 U.S.C. § 78p (insider reporting and short-swing profits)
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    15 U.S.C. § 78o (broker-dealer regulation)

📌 Recent Changes or Live Controversies

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    Ongoing SEC rulemaking on climate disclosure and crypto-assets
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    Enforcement actions against insider trading and market manipulation
  • •
    Debates about the SEC’s authority over decentralized finance (DeFi) and digital assets

📌 Official Sources