Which U.S. government agency is responsible for regulating the process of capital raising by issuers?

The Securities Exchange Commission (SEC) is the U.S. government agency charged with overseeing the regulation of the capital-raising process by issuers. This includes enforcing securities laws to protect investors, maintaining fair and efficient markets, and facilitating capital formation. The SEC's role encompasses the registration of securities, ensuring transparency through disclosures, and monitoring trading activities to prevent fraud and insider trading.

This regulatory oversight is vital as it helps to ensure that companies seeking to raise capital comply with strict guidelines that promote integrity and transparency in the financial markets. By reviewing the registration statements that issuers must file before selling securities, the SEC ensures that potential investors have access to essential information, contributing to informed investment decisions.

Other agencies mentioned in the options have different focuses. The Federal Reserve primarily manages monetary policy and regulates banks, while the CFTC oversees derivatives markets, including futures and options. FINRA operates as a self-regulatory organization overseeing brokerage firms and their representatives but is not the lead agency for the broader securities regulation, which falls under the SEC’s purview.