The U.S. Securities and Exchange Commission (SEC) plays a critical role in regulating cryptocurrency and blockchain companies by ensuring compliance with securities laws. The SEC oversees the classification of digital assets, determining whether they qualify as securities and are subject to regulation. It monitors Initial Coin Offerings (ICOs) and token sales to prevent fraud and protect investors. The SEC also enforces transparency and disclosure requirements for companies operating in the crypto space, ensuring they meet financial reporting standards. By regulating exchanges and market activities, the SEC aims to maintain market integrity and protect investors from potential risks, including market manipulation and scams.