SEC Commissioner Uyeda Remarks At The 90th Anniversary Of The US Securities And Exchange Commission Celebration

Good afternoon. Today, we commemorate the 90th anniversary of the Securities Exchange Act of 1934 (the “Exchange Act”),[1] and with it, the founding of the Securities and Exchange Commission (“SEC” or “Commission”).[2] I am pleased to celebrate this moment with my fellow colleagues at the Boston Regional Office.

The Exchange Act, along with the Securities Act of 1933, provide the legal foundation governing our capital markets. Based on the concept of a disclosure-based, merit-neutral regulatory framework, these laws have facilitated tremendous economic growth, jobs creation, and innovation for the American economy over the past 90 years. It is a period mirrored by our country’s rise to become an economic superpower — and that is not by mere coincidence.

Like any organization, the Commission is merely a legal vessel that exists only on paper. What breathes life into the Commission is its people and its culture. Today, we celebrate the dedicated public servants who have made this agency what it is over the past nine decades. We owe a debt of gratitude to every person who has served before us. It is an honor to have Chairman Breeden, Chair Schapiro, and Chair White this afternoon to represent those predecessors.

Turning back to the 1930s, our country faced immense challenges. The Market Crash of 1929 had shaken the public’s confidence in our markets and our economy suffered. 

At this time in history, Congress had a choice. A number of states had already adopted securities laws that were often referred to as “blue sky laws.” Indeed, before joining the Commission in 2006, I was a regulator with the California Department of Corporations, which was created by the California legislature in 1913 to oversee the offer and sale of securities.[3]

Rather than adopting the merit-based blue sky laws that many states had implemented, including California, instead Congress opted to implement a disclosure-based regime. It was a fortuitous choice, made long before widespread discussion of the efficient markets hypothesis, and laying the foundation for the economic growth that followed.

By emphasizing transparency and accountability, the Commission laid the groundwork for capital markets that thrive on the free flow of information. Investors were empowered to make informed decisions themselves while the SEC facilitated an environment of credible information and market integrity. This approach has been a fundamental reason why our markets have become the envy of the world.   

In September 1970, Chairman Hamer Budge expressed these points succinctly: “Investors, both large and small, can invest in our markets with the assurance that market forces, rather than manipulative forces, are determining the day-to-day prices which they pay and receive for their securities. It is vital to our economic growth and development that our securities markets continue to operate fairly and freely of artificial restraints.”[4]

I have been lucky to have been part of the Commission for the past 18 years, first as a member of its staff, and then as a Commissioner. There are others at the Commission who have been here much longer than that. It has been a privilege to serve with you.

Our history and commitment for the past ninety years should make each of you proud. However, we cannot rest on our laurels. Just as the drafters of the Exchange Act likely would not have envisioned a world where an investor could buy and sell baskets of securities on a tiny mobile communications device from anywhere in the country, we need to think about how the SEC fulfills its mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation in an ever-evolving technological environment.

Today, let us reaffirm our commitment to the principles upon which this agency was founded. I look forward to working with you as we continue on that journey.