Securities Act of 1933

1) Link to the Text of the Act
Read the statute (15 U.S.C. § 77a et seq.)

2) Why It Was Done
Passed in the wake of the 1929 stock market crash, the Act aimed to restore investor confidence by requiring transparency in the offer and sale of securities and preventing fraud.

3) Pre-existing Law or Constitutional Rights
Before 1933, securities offerings were regulated primarily at the state level (“blue sky laws”). The crash revealed the need for a strong federal disclosure regime.

4) Overreach or Proper Role?
Supporters say it established essential investor protections. Critics argue compliance costs can burden startups and small companies seeking capital.

5) Who or What It Controls

Companies issuing securities (must register with the SEC unless exempt)
Underwriters and brokers involved in public offerings
Investors benefit from disclosure requirements

6) Key Sections / Citations

15 U.S.C. § 77e (registration of securities)
15 U.S.C. § 77q (fraudulent interstate transactions)
15 U.S.C. § 77k (civil liabilities for false registration statements)

7) Recent Changes or Live Controversies

SEC modernization of disclosure rules for digital filings
Expanded exemptions for private offerings (e.g., Regulation D, crowdfunding rules)
Ongoing debates about crypto-assets and whether they are securities under this Act

8) Official Sources