Differences Between SEC and CFTC

The SEC and CFTC are distinct regulatory agencies in the U.S., with the SEC overseeing securities markets and the CFTC focusing on commodities and futures trading. The SEC was established in the 1930s, while the CFTC was created in the 1970s, born out of a need to regulate financial instruments that had evolved beyond traditional commodity trading. The CFTC originally governed agriculture-based markets, while the SEC covers stocks, mutual funds, and asset managers. As financial practices evolved, it became evident that the CFTC required broader regulatory powers to address the increasingly complex landscape of futures trading.