SOC 2 focuses on service organizations and evaluates controls related to security, availability, processing integrity, confidentiality, and privacy. It is often required by clients seeking assurance about how their data is managed. In contrast, SOX (Sarbanes-Oxley Act) is a U.S. federal law aimed at protecting investors by enforcing accuracy in corporate financial reporting. Understanding SOC2 vs SOX helps companies align their compliance efforts based on industry requirements and stakeholder expectations.