The Securities and Exchange Commission (SEC) announced the creation of the Cyber and Emerging Technologies Unit (CETU) to address cyber-related misconduct and safeguard retail investors. The CETU replaces the Crypto Assets and Cyber Unit and consists of approximately 30 fraud specialists and attorneys from multiple SEC offices. The unit, led by Laura D’Allaird, will focus on emerging technologies, including artificial intelligence, blockchain, and cybersecurity risks. Acting Chairman Mark T. Uyeda highlighted, “The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”
The CETU will prioritize cases involving fraud through artificial intelligence and social media, hacking to obtain nonpublic information, and account takeovers. It will also address blockchain-related fraud and cybersecurity compliance by regulated entities. The unit aims to strengthen investor confidence in technological advancements while ensuring proper adherence to cybersecurity regulations. This initiative reinforces the SEC’s commitment to combatting misconduct in emerging technology sectors and maintaining the integrity of the financial markets.
