Oversight of skydiving involves multiple entities, most notably including the USPA, and the FAA.
The mission of the Federal Aviation Administration is to provide the safest, most efficient aviation system in the world. They regulate aspects of skydiving and rely on the self-regulation of the participants through the guidelines and recommendations published by USPA. The FAA's main responsibility is to provide for the safety of air traffic, as well as persons and property on the ground. The FAA does this by certificating pilots, mechanics, air traffic controllers and parachute riggers and by requiring approval data for aircraft and parachutes. The agency has the authority to impose fines and suspend or revoke certificates it has issued. In the case of a skydiving violation, the FAA can fine the pilot, rigger, jumpers, as well as suspend or revoke the certificates of pilots and riggers.
The FAA and USPA rely on self-regulation from within the skydiving community for most training and operational requirements.