What it is
The Securities and Exchange Commission (SEC) is an independent agency of the US federal government, established in 1934. Its primary mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The SEC enforces federal securities laws, proposes new rules, and oversees securities exchanges, broker-dealers, and investment advisors.
In the crypto market, the SEC asserts jurisdiction over digital assets it deems to be "securities" under the Howey test. It plays a critical role in approving or denying spot crypto ETFs and brings enforcement actions against firms for alleged violations of securities laws, such as offering unregistered securities. Its decisions significantly influence market structure and investor access to crypto products.
Why it matters
The SEC's regulatory actions and approvals directly impact the legality, accessibility, and market prices of many crypto assets and investment products.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice