The US Securities and Exchange Commission has established a Cyber and Emerging Technologies Unit (CETU) aimed at addressing cyber-related misconduct and safeguarding retail investors from hacking and the misuse of artificial intelligence.
The CETU, under the leadership of Laura D’Allaird, replaces the former Crypto Assets and Cyber Unit and consists of around 30 fraud specialists and attorneys from various SEC offices. This new unit is smaller than its predecessor, reflecting the US Government’s intention to loosen the regulatory constraints that have limited the cryptocurrency sector.
SEC acting chairman Mark Uyeda stated, “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 target fraud involving emerging technologies, including artificial intelligence and machine learning, as well as hacking, the takeover of retail brokerage accounts, and the exploitation of social media, the dark web, or fake websites for fraudulent activities.
With an impending shift towards a more relaxed regulatory environment for the cryptocurrency sector, supported by a strong government push, the CETU is poised to face significant challenges in its mission to combat fraud related to blockchain technology and crypto assets.