Final answer:
The Securities and Exchange Commission (SEC) is the federal agency that regulates the investment industry to protect investors and maintain market integrity.
Explanation:
The federal agency that regulates the investment industry is the Securities and Exchange Commission (SEC). The SEC was established in response to legislation of 1933 and 1934 to protect the interests of public investors against malpractices. It regulates corporations, brokerage firms, stock market transactions, and enforces rules regarding the sale and purchase of securities.
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