This paper explores the impact of regulatory reforms on market efficiency, emphasizing the crucial balance between oversight and market dynamism. Market efficiency, characterized by the extent to which prices reflect all available information, is vital for optimal resource allocation and economic stability. Regulatory reforms aim to enhance market transparency, reduce systemic risk, promote competition, and safeguard market integrity. Increased transparency through stringent disclosure requirements helps mitigate information asymmetry, allowing investors to make informed decisions that align prices with underlying asset values. Reforms designed to address systemic risk, such as the Dodd-Frank Act in the U.S., seek to enhance the stability of financial institutions, thereby reducing market volatility and fostering investor confidence.