Who has the authority to create securities regulations?

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Government agencies are responsible for creating securities regulations. In the United States, for example, this authority is primarily vested in the Securities and Exchange Commission (SEC). These agencies are tasked with enforcing federal securities laws, regulating the securities industry, and protecting investors. They create rules and regulations that dictate how securities can be issued and traded, which ultimately helps to maintain fair and efficient markets.

This regulatory framework is necessary to ensure transparency, prevent fraud, and enhance the overall integrity of the financial markets. Government agencies work to balance the interests of various stakeholders—including investors, issuers, and market participants—to create a stable environment for capital raising.

While investment banks, private organizations, and public advocacy groups may influence regulations through lobbying, research, or advocacy campaigns, the formal authority to enact regulations lies with government entities that are equipped to create and enforce legal guidelines in the securities realm.

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