Congress creates the Securities and Exchange Commission, adding federal oversight of securities markets.

In 1934, the United States established federal securities oversight through the creation of the Securities and Exchange Commission (SEC), marking a major milestone in the history of the New York Stock Exchange (NYSE) and the American financial system. Following the devastating Wall Street Crash of 1929 and the economic challenges of the Great Depression, Congress passed the Securities Exchange Act of 1934, which established the SEC as an independent federal regulatory agency. The commission was created to oversee securities markets, regulate stock exchanges and brokerage firms, protect investors, and promote fair and transparent trading practices. This landmark legislation introduced a comprehensive federal regulatory framework designed to strengthen financial market integrity, prevent market manipulation, and improve public confidence in securities trading. The establishment of the SEC transformed the American financial industry by introducing stronger oversight, disclosure requirements, and accountability for publicly traded companies and market participants. Under the new regulatory system, the NYSE and other securities exchanges became subject to federal supervision, helping establish more consistent standards for market operations and investor protection. The SEC's responsibilities included enforcing securities laws, monitoring trading activities, investigating fraudulent practices, and promoting accurate financial reporting. Its creation represented a turning point in the development of modern financial regulation, laying the foundation for a more transparent, organized, and resilient securities market. Today, the SEC remains one of the most influential financial regulatory institutions in the world, playing a vital role in protecting investors, maintaining fair and efficient markets, and facilitating capital formation.