tl;dr
The SEC has launched the Cyber and Emerging Technologies Unit (CETU) to combat cyber-related misconduct and fraud in the technology sector. The unit replaces the former Crypto Assets and Cyber Unit and will focus on fraud involving AI and machine learning, misleading schemes on social media and the ...
The SEC has launched the Cyber and Emerging Technologies Unit (CETU) to combat cyber-related misconduct and fraud in the technology sector. The unit replaces the former Crypto Assets and Cyber Unit and will focus on fraud involving AI and machine learning, misleading schemes on social media and the dark web, hacking for financial information, takeovers of retail brokerage accounts, crypto scams, and ensuring compliance with cybersecurity regulations. Laura D'Allaird is leading the unit, and the SEC has been restructuring its approach to crypto market regulation under acting chairman Mark Uyeda. The message is that while innovation in finance is welcome, bad actors exploiting new technologies will not be tolerated.
The SEC continues its reorganization as the agency just launched the Cyber and Emerging Technologies Unit (CETU), a new initiative aimed at combating cyber-related misconduct and fraud in the technology sector. This unit replaces the former Crypto Assets and Cyber Unit and brings together about 30 legal and fraud specialists from various SEC offices.
SO, WHAT'S CETU RESPONSIBLE FOR? Quite a bit. Fraud fueled by AI and machine learning, misleading schemes on social media and the dark web, and even cases of hacking to obtain sensitive financial information, are just the beginning. Takeovers of retail brokerage accounts and crypto scams are also under scrutiny, as is ensuring that regulated entities are actually complying with cybersecurity regulations. Even public companies that misrepresent cybersecurity risks could find themselves in the crosshairs.
Laura D'Allaird is leading the charge. She has been at the SEC for years, most recently as co-chief of the now-defunct Crypto Assets and Cyber Unit. She has also served as counsel to Commissioner Jaime Lizárraga and the director of enforcement.
The SEC itself has been undergoing changes since January of this year. Mark Uyeda took over as acting chairman last month, and the agency has begun to restructure how it handles crypto market regulation, including recently closing its dedicated crypto enforcement unit and starting from scratch.
The message is clear: innovation in finance is welcome, but bad actors exploiting new technologies will not get a free pass.