Which organization regulates state municipal securities?

The Municipal Securities Rulemaking Board (MSRB) is the organization responsible for regulating state and local municipal securities. Its primary function is to create rules that govern the municipal securities market, ensuring fair practices for both issuers and investors. The MSRB establishes standards for the underwriting, trading, and reporting of municipal securities and also oversees the activities of brokers, dealers, and municipal advisors in this area.

This regulatory body plays a crucial role in protecting investors by promoting transparency and promoting honest practices within the municipal securities market. Its rules help monitor compliance and ensure that transactions are processed fairly and accurately, thereby contributing to the overall integrity of the municipal securities industry.

While FINRA also regulates certain aspects of securities and has authority over many broker-dealers, its jurisdiction does not cover municipal securities specifically. The SEC (Securities and Exchange Commission) oversees the entire securities industry, including municipal securities, but it generally functions at a higher regulatory level compared to the focused regulations of the MSRB. The IRS (Internal Revenue Service) is involved with tax implications related to municipal securities, but it does not regulate their issuance or trading. Therefore, the MSRB is specifically designated for the regulation of municipal securities, making it the correct answer.