ArtI.S8.C3.1.8.6 Securities and Exchange Commission

Article I, Section 8, Clause 3:

[The Congress shall have Power . . .] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes; . . .

Not all antidepression legislation, however, was of this new approach. The Securities Exchange Act of 1934 1 and the Public Utility Company Act (Wheeler-Rayburn Act) of 1935 2 were not. The former created the Securities and Exchange Commission and authorized it to lay down regulations designed to keep dealing in securities honest and aboveboard and closed the channels of interstate commerce and the mails to dealers refusing to register under the act. The latter required the companies governed by it to register with the Securities and Exchange Commission and to inform it concerning their business, organization, and financial structure, all on pain of being prohibited use of the facilities of interstate commerce and the mails; while, by § 11, the so-called death sentence clause, the same act closed the channels of interstate communication after a certain date to certain types of public utility companies whose operations, Congress found, were calculated chiefly to exploit the investing and consuming public. All these provisions have been sustained, 3 with the Court relying principally on Gibbons v. Ogden.


  1.  Jump to essay-148 Stat. 881, 15 U.S.C. §§ 77b et seq.
  2.  Jump to essay-249 Stat. 803, 15 U.S.C. §§ 79–79z–6.
  3.  Jump to essay-3Electric Bond Co. v. SEC, 303 U.S. 419 (1938); North American Co. v. SEC, 327 U.S. 686 (1946); American Power & Light Co. v. SEC, 329 U.S. 90 (1946).