Securities Act 1934

Definition ∞ The Securities Exchange Act of 1934 is a United States federal law that governs the secondary trading of securities, brokers, dealers, and exchanges. It established the Securities and Exchange Commission (SEC) and granted it broad authority over the securities industry. This act mandates reporting requirements for publicly traded companies and prohibits various forms of market manipulation. It aims to ensure fair and orderly markets.
Context ∞ This foundational legislation is frequently referenced in discussions concerning the classification and regulation of digital assets, particularly regarding whether certain cryptocurrencies qualify as securities. The application of the 1934 Act to novel digital asset structures remains a central legal debate, influencing enforcement actions and regulatory guidance. News often reports on SEC cases where the interpretation of this act is critical to the outcome for crypto projects.