Which organization is responsible for regulating the securities industry in the U.S.?

The Securities and Exchange Commission (SEC) is the primary organization responsible for regulating the securities industry in the United States. The SEC was established to protect investors, maintain fair and efficient markets, and facilitate capital formation. It oversees the securities industry, including stock exchanges, brokerage firms, and investment advisors, ensuring they comply with federal securities laws.

While FINRA, the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees brokerage firms and their registered representatives, its regulatory scope is more limited compared to the SEC. FINRA operates under the oversight of the SEC, which sets the broader regulations and laws governing the securities market.

The FDIC (Federal Deposit Insurance Corporation) is primarily concerned with banking regulations and insuring deposits in commercial banks and savings institutions, while the CFTC (Commodity Futures Trading Commission) regulates the commodity futures and options markets.

Therefore, the SEC is the correct answer as it takes precedence in the regulation of all aspects of the securities industry in the U.S., distinguishing its broad authority from the more specific roles of the other organizations listed.