The Securities and Exchange Commission was established in 1934 with the objective of restoring investor confidence and regulating financial markets in the aftermath of the Great Depression. The organization assists investors in making informed decisions by ensuring the disclosure of financial information through securities registrations. The SEC operates with mechanisms that are shaped according to changing needs. The regulatory role of the SEC is critical for the Islamic finance sector to compete in the US financial markets. The challenges posed by Sharia compliance, the absence of standardized regulations, and cultural differences to conventional institutional structures such as the SEC are compounded by the unique characteristics of Islamic financial instruments. However, international experiences and regulatory measures have proven effective in preventing market irregularities and enabling investors to make more informed decisions. Notably, Islamic investment instruments such as sukuk, when issued in compliance with the SEC’s Securities Act of 1933, offer a more secure financial framework for international investors.