SEC (Securities and Exchange Commission)

The U.S. Securities and Exchange Commission is the primary federal regulator of securities markets in the United States, established in 1934 following the Great Depression to restore investor confidence and prevent market manipulation.

In the crypto and digital asset space, the SEC has taken an assertive regulatory stance, particularly under Chair Gary Gensler's leadership since 2021. The agency applies the Howey Test from a 1946 Supreme Court case to determine whether crypto tokens qualify as securities requiring registration. The SEC has brought enforcement actions against major exchanges including Coinbase and Binance, alleging they operated as unregistered securities exchanges and broker-dealers. The agency also regulates tokenized securities, requiring issuers to comply with traditional securities laws unless they qualify for exemptions.

The SEC's Division of Corporation Finance and Division of Trading and Markets oversee crypto-related activities, while the Strategic Hub for Innovation and Financial Technology (FinHub) provides guidance to industry participants navigating securities laws in the digital asset context.