SOC 2 and SOX (Sarbanes-Oxley Act) both relate to compliance but target different areas. SOC 2 focuses on data security and privacy for service providers, evaluated by independent auditors. It’s customer-driven and often requested in B2B partnerships. SOX, on the other hand, is a U.S. federal law that mandates financial reporting and internal control standards for public companies. SOX compliance ensures accurate financial disclosures and prevents corporate fraud. While SOC 2 is voluntary and based on the AICPA Trust Services Criteria, SOX is mandatory. Companies may need both to satisfy customer assurance (SOC 2) and regulatory obligations (SOX).