How did Congress empower the SEC through SOX?

The correct answer to how Congress empowered the Securities and Exchange Commission (SEC) through the Sarbanes-Oxley Act (SOX) is by increasing corporate accountability. The Sarbanes-Oxley Act, enacted in response to financial scandals such as Enron and WorldCom, aimed to enhance the integrity of financial reporting and protect investors.

This was achieved by imposing stricter regulations on public companies and their financial disclosures, which in turn gave the SEC greater authority and responsibilities. For example, SOX established requirements for greater transparency in financial reporting, led to the creation of the Public Company Accounting Oversight Board (PCAOB) to oversee the audits of public companies, and mandated that senior executives take individual responsibility for the accuracy of financial reports. These measures significantly bolstered the SEC's role in monitoring and enforcing compliance, thereby promoting a culture of accountability among corporations.

In contrast, the other options do not reflect the intent or impact of SOX. Restricting oversight powers, limiting regulatory decisions, or allowing the SEC to approve mergers and acquisitions do not align with the central purpose of SOX, which was to enhance the regulatory framework and protect investors through increased accountability and transparency within the corporate sector.