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      SEC Establishes Cyber and Emerging Technologies Unit

      Published: just now

      SEC Establishes Cyber and Emerging Technologies Unit

      The Securities and Exchange Commission announced today the formation of the Cyber and Emerging Technologies Unit (CETU), which will replace the Crypto Assets and Cyber Unit. The new unit will focus on addressing cyber-related misconduct and protecting investors from fraudulent activities in emerging technology sectors.

       

      Laura D'Allaird will lead the CETU, which consists of approximately 30 fraud specialists and attorneys working across multiple SEC offices.

       

      "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," said Acting Chairman Mark T. Uyeda. "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."

       

      The CETU will leverage staff expertise in financial technology and cybersecurity to address misconduct related to securities transactions in several key areas, including:

       

      • Fraud involving emerging technologies such as artificial intelligence and machine learning
      • Misuse of social media, dark web, or fraudulent websites
      • Hacking to access material nonpublic information
      • Unauthorized access to retail brokerage accounts
      • Fraud related to blockchain technology and crypto assets
      • Monitoring regulated entities' compliance with cybersecurity regulations
      • Scrutinizing public company disclosures regarding cybersecurity matters

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