The U.S. Securities and Exchange Commission (SEC) has announced the establishment of a new division—the Cyber and Emerging Technologies Unit (CETU). This newly formed entity, led by Laura D’Allaird, will replace the existing Crypto Assets and Cybersecurity Unit and will focus on combating fraud in the digital asset sector while safeguarding retail investors.
CETU will comprise approximately 30 experts in fraud enforcement and securities law, drawn from various SEC offices. According to Acting Chair Mark T. Uyeda, the unit will work closely with the Crypto Assets Working Group, chaired by Commissioner Hester Peirce. The primary mission of CETU is to identify malicious actors exploiting technology to the detriment of investors while simultaneously fostering capital formation and enhancing market efficiency.
The unit will spearhead investigations into critical areas, including fraud involving artificial intelligence and machine learning, market manipulation via social media and the darknet, insider information theft through cyber intrusions, hacks targeting retail brokerage accounts, and crypto asset schemes. Additionally, CETU will oversee cybersecurity compliance and scrutinize instances of fraudulent disclosures by publicly traded companies.
The SEC underscores that CETU’s creation will enable a more efficient allocation of resources amid the escalating tide of financial crime in the digital sphere. The new division is expected to bolster investor protections and curb misconduct in the rapidly evolving financial technology landscape.
