The US Securities and Exchange Commission (SEC) announced the launch of the Cyber and Emerging Technologies Unit (CETU) to combat cyber-related fraud and protect retail investors from risks in emerging technologies. Headed by Laura D’Allaird, CETU replaces the Crypto Assets and Cyber Unit and includes a team of roughly 30 fraud specialists and attorneys working across multiple SEC divisions. CETU Takes Charge According to the official press release , CETU will leverage its staff’s fintech and cybersecurity expertise to address misconduct in securities transactions. The newly established enforcement unit’s priorities include combating fraud involving artificial intelligence, machine learning, and blockchain technology, as well as preventing crypto-related scams. The focus will also be on cyber threats like hacking for material nonpublic information, retail brokerage account takeovers, and fraudulent schemes using social media, the dark web, or fake websites. Additionally, CETU will ensure regulated entities comply with cybersecurity rules and scrutinize public issuers for misleading cybersecurity disclosures for investor protection and market integrity. In an official statement, Acting Chairman Mark T. Uyeda stated, “Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously. 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.” SEC’s Legal Shifts The SEC’s creation of the CETU comes amid a series of positive developments from the agency. Under Uyeda, the SEC recently voluntarily dismissed its appeal of a lawsuit challenging its dealer rule expansion, a move welcomed by industry participants who viewed the rule as an indirect attempt to regulate crypto trading firms. Additionally, the SEC’s recent court filings in enforcement cases against Binance , Coinbase , and Lejilex requested stays, citing the agency’s efforts to develop a crypto regulatory framework, which is expected to pave the way for more constructive resolutions. These developments have further fueled speculation about a possible withdrawal of the Ripple case. The post SEC Launches Cyber and Emerging Technologies Unit to Combat Cyber Fraud and Crypto Scams appeared first on CryptoPotato .
