The Securities and Exchange Commission (SEC) has established the Cyber and Emerging Technologies Unit (CETU) to address cyber-related misconduct and safeguard retail investors in the evolving tech landscape. This new unit, led by Laura D’Allaird, succeeds the former Crypto Assets and Cyber Unit and comprises around 30 fraud specialists and attorneys from various SEC offices.
Acting Chairman Mark T. Uyeda emphasized that CETU’s formation aims to protect investors while promoting innovation. He noted that the unit will “root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”
CETU’s priorities include addressing fraud involving emerging technologies like artificial intelligence and machine learning, misuse of social media and the dark web for fraudulent activities, unauthorized acquisition of non-public information through hacking, takeovers of retail brokerage accounts, fraud related to blockchain and crypto assets, ensuring regulated entities comply with cybersecurity regulations, and monitoring public companies’ disclosures concerning cybersecurity.
This initiative reflects the SEC’s commitment to adapting its enforcement strategies to the rapidly changing technological environment, aiming to foster a secure and transparent market for investors and innovators alike.
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