Final answer:
The Securities and Exchange Commission (SEC) is the federal agency responsible for establishing reporting requirements for public companies that issue stock. The SEC is an independent regulatory agency that oversees the investment industry and includes digital trading within its regulatory scope.
Step-by-step explanation:
The agency of the federal government that establishes reporting requirements for companies that issue stock to the public is the Securities and Exchange Commission (SEC). The SEC is an independent regulatory agency that regulates the investment industry and has expanded its mission to cover digital trading platforms in addition to the traditional stock exchange floor.
The Federal Reserve System (FRS), while having supervisory responsibilities over financial institutions, particularly bank holding companies, does not have the primary role of establishing reporting requirements for public companies. Similarly, the Internal Revenue Service (IRS) and the Department of Commerce (DOC) are not directly responsible for this function.
It is important to differentiate between these various agencies and their roles within the federal financial regulatory framework.