The Securities and Exchange Commission (SEC) has announced the formation of the Cyber and Emerging Technologies Unit (CETU), a new enforcement division aimed at protecting retail investors from cyber-related misconduct and fraud in emerging technology sectors like artificial intelligence (AI).
Led by Laura D’Allaird, CETU replaces the Crypto Assets and Cyber Unit and consists of approximately 30 fraud specialists and attorneys. The unit’s creation reflects the SEC’s commitment to adapting to rapid technological advancements while maintaining market integrity.
“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce,” said Acting SEC Chairman Mark T. Uyeda. “The unit will not only protect investors but 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.”
CETU will focus on key areas where emerging technologies intersect with securities fraud, including the misuse of AI, fraud perpetrated through social media and the dark web, and hacking schemes designed to access nonpublic financial information. Additionally, the unit will address cybersecurity compliance among regulated entities and ensure public issuers provide accurate disclosures regarding cyber risks.
With fraud involving blockchain and crypto assets remaining a priority, CETU aims to reinforce investor protections in digital markets while allowing legitimate technological advancements to thrive.
The SEC’s latest move highlights its growing focus on cyber threats and technological risks that could undermine investor confidence. The new unit’s enforcement actions are expected to shape the regulatory landscape for fintech, artificial intelligence, and blockchain industries, ensuring that innovation is not exploited at the expense of retail investors.
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