Securities Exchange Act

Definition ∞ The Securities Exchange Act of 1934 is a foundational piece of U.S. legislation that governs the secondary trading of securities. It established the Securities and Exchange Commission (SEC) and grants it broad authority to regulate exchanges, brokers, dealers, and other market participants. The Act mandates disclosure requirements, prohibits manipulative and deceptive practices, and aims to ensure fair and orderly markets. Its provisions are frequently applied or debated in relation to the trading of digital assets.
Context ∞ The applicability of the Securities Exchange Act to digital assets is a primary concern for regulators and the crypto industry. News coverage often details SEC enforcement actions and legal interpretations regarding whether certain tokens or platforms fall under the Act’s purview. Current debates center on the definition of a security in the digital asset context, the registration requirements for exchanges and brokers dealing in such assets, and the implications for market structure and investor protection.