SEC Launches Cyber and Emerging Technologies Unit to Combat Fraud

The US Securities and Exchange Commission (SEC) has established the Cyber and Emerging Technologies Unit (CETU) to address cyber-related misconduct and protect retail investors from hackers and the misuse of emerging technologies like AI.

Led by Laura D’Allaird, the CETU replaces the Crypto Assets and Cyber Unit and consists of approximately 30 fraud specialists and attorneys across multiple SEC offices. The new unit reflects a shift toward a more flexible regulatory approach, particularly in the cryptocurrency space.

SEC Acting Chairman Mark Uyeda stated, “The CETU will protect investors while fostering innovation. It will root out those misusing technology to harm investors and undermine confidence in new technologies.”

The CETU will focus on fraud involving AI, machine learning, hacking, and the misuse of social media, the dark web, and fake websites. It also aims to combat fraud related to blockchain and crypto assets, though its efforts may face challenges amid a looser regulatory environment for cryptocurrencies.