What is the Securities and Exchange Commission (SEC)? - Crypto in Plain English - Episode 274 - by cryptohunt.it

What is the Securities and Exchange Commission (SEC)?

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

If you have been around in crypto land, you have certainly heard of the SEC. Likewise, if you’ve ever invested in stock in the US or in a US-headquartered company, the SEC will have had a huge influence on your investment without you even noticing.

The SEC, which is short for Securities and Exchange Commission, is a US government agency that has the purpose of protecting investors and making sure markets works well and without interruption or interferrence.

It has a very interesting history! Let’s go all the way back to 1929, when the first massive stock market crash happened, bringing down the worldwide economy and causing a huge recession that caused poverty and pain for many ordinary people.

Things were so bad, in fact, that the US government looked at many options to avoid future crashes of those proportions. The result is the creation of the SEC in 1933.

Today, it still has the same job: It makes sure that companies present investments honestly, and give potential investors fair warning about risks and downsides. And it makes sure that those selling those investments - like banks and brokers - also treat investors fair and truthfully.

And that is a really big deal, because swindlers will tell you anything to make you buy their investment scams. Crypto is a great example: There is someone at every corner trying to sell you their token, lying about it just to run away with your money. Remember last week’s episode about Kim Kardashian promoting a really scammy token? Exactly.

But with laws in place, and the SEC cracking down on these things, bad actors are deterred, because the penalties can be dramatic: Jail time and large fines are very common.

We still have ways to go though: Officially, the US government hasn’t decided yet who’s going to oversee the crypto markets. And while the SEC is getting involved here and there, we have no clear rules and frameworks that honest companies can follow.

We’ll get there eventually - until then keep an eye on the news. And next time you know exactly what the SEC is.

This podcast is produced by Cryptohunt.it the easiest place to learn crypto. Copywriting is done by Arndt Voges, Social Media is done by Brett Holleman, Design is done by Carmen Rincon and my name is Christian Byza, Co-Founder of Cryptohunt and I am your host of this daily show.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.