The US SEC Establishes Cyber and Emerging Technologies Unit to Combat Misconduct
The US Securities and Exchange Commission (SEC) announced on Thursday the establishment of the Cyber and Emerging Technologies Unit (CETU) to tackle cyber-related misconduct and safeguard retail investors from emerging technology threats. Led by Laura D’Allaird, the CETU replaces the agency’s previous Crypto Assets and Cyber Unit and is comprised of around 30 fraud specialists and attorneys from various SEC offices.
Regulatory Focus on Technological Advancements
The formation of the CETU reflects the SEC’s broader regulatory efforts in response to the rapidly evolving landscape of technologies. The unit will prioritize addressing a range of cyber-related threats affecting the financial industry.
Key Areas of Focus
The CETU will concentrate on combating fraudulent activities involving the increased use of artificial intelligence and machine learning, scams propagated through social media platforms, the dark web, or deceptive websites, as well as hacking incidents aimed at obtaining confidential information. Additionally, the unit will tackle issues such as retail brokerage account takeovers, fraud linked to blockchain technology and crypto assets, cybersecurity compliance among regulated entities, and misleading disclosures by public companies regarding cybersecurity breaches.
Acting Chairman Mark Uyeda stated, “Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. The unit aims to protect investors, promote capital formation, and enhance market efficiency by fostering innovation while rooting out those who seek to exploit innovation to harm investors and erode confidence in new technologies.”
Leadership and Enforcement Efforts
Laura D’Allaird assumed the position of Co-Chief of the Crypto Assets and Cyber Unit within the SEC’s Division of Enforcement last December, alongside Mark Sylvester. Before this role, she served as counsel to SEC Commissioner Jaime Lizárraga. D’Allaird is responsible for supervising the SEC’s enforcement actions related to crypto and cybersecurity matters, coinciding with significant changes in SEC regulation of crypto assets towards clearer guidelines and streamlined registration processes.