We don’t usually ask where the law comes from when we learn something is against the law. However, the term “law” can refer to a wide range of things, from broad notions about jurisprudence to a specific written ordinance. While the terms ‘law‘ and’regulation’ are frequently used interchangeably, they can mean very different things.

Despite the fact that the effects of rules and regulations are often the same, it is critical to understand how they differ.

The Law’s Letter

Written statutes, passed by the United States Congress or state legislatures, produce laws. Legislators draught legislation that become statutory law once they are enacted by a vote.

In reaction to the 1929 stock market crisis, Congress created the Securities and Exchange Act of 1934, which aimed to prevent securities fraud and insider trading. The Act, which is codified in the United States Code as Title 15, Section 78a, forbids the publication of false or misleading information in connection with securities transactions, among other things. The Securities and Exchange Commission was established as a result of the Securities and Exchange Act, and is responsible for enforcing federal securities regulations.

Norms and Regulations

Regulations, on the other hand, are the norms and regulations that administrative bodies adopt to control how laws are applied. As a result, an agency like the Securities and Exchange Commission (SEC) might establish its own rules for implementing important securities laws. While the Securities and Exchange Act forbids the use of insider or nonpublic information to make trades, the SEC can set its own rules for investigating insider trading allegations.

Regulations, like laws, are codified and published so that all parties are aware of what is and isn’t legal. Regulations typically have the same power as laws since regulatory authorities would be unable to enforce laws without them.

If you have a regulatory question, you should speak with an expert government agencies and programmes attorney in your area.

Leave a comment

Your email address will not be published. Required fields are marked *