Want to quickly understand the SEC? Just remember these three points—it's not complicated at all.

First, what does it do? It's the regulator and rule-maker of the US financial markets. The agency was established in 1934, right after the Great Depression wreaked havoc on the stock market. It was created specifically to protect retail investors and prevent the market from being wrecked by fraud and manipulation. Simply put, it's there to back up investors.

Its jurisdiction is quite broad. In traditional finance, US stocks, bonds, funds, brokerages (like JPMorgan), and exchanges (like Nasdaq) are all under its watch. It doesn’t overlook emerging sectors either—cryptocurrencies and tokenized assets (such as stock tokens) are also subject to its regulation. How does it regulate? By setting trading rules (like requiring companies to disclose financials), investigating illegal activities (insider trading, financial fraud—none can escape), and prosecuting when necessary.

What does the SEC mean for ordinary investors? It's basically a safety benchmark. When you buy US stocks or bonds, markets overseen by the SEC are relatively well regulated, company information is more transparent, and the chances of stepping into a pitfall are much lower. As for cryptocurrencies, whether the SEC classifies a particular token as a "security" directly determines its legality in the US market—which is especially important for crypto players.