What agency oversees the regulation of insider trading in the United States?

The Securities and Exchange Commission (SEC) is the agency responsible for overseeing the regulation of insider trading in the United States. Insider trading involves buying or selling stocks based on material, non-public information about a company. This practice is considered illegal because it undermines the integrity of the securities markets and can create an uneven playing field for investors.

The SEC was created to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. It has the authority to enforce securities laws, investigate suspected cases of insider trading, and impose penalties on individuals and companies found to be violating these laws. By monitoring trading patterns, reviewing insider trading reports, and taking action against violators, the SEC plays a crucial role in maintaining trust in the financial markets.

In contrast, other agencies listed, such as the Federal Bureau of Investigation and the Department of Justice, do have roles in enforcing laws, including government-level crimes like insider trading, but they do not specialize in securities regulation. The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees broker-dealers and enforces compliance with federal securities laws, but it does not have the primary authority for regulating insider trading, which firmly falls under the SEC's mandate.