The U.S. Securities and Exchange Commission (SEC) announced Thursday the creation of a new specialized unit focused on combating cyber-related misconduct and protecting investors from emerging technology threats.
The Cyber and Emerging Technologies Unit (CETU), led by Laura D'Allaird, will replace the agency's previous Crypto Assets and Cyber Unit. The new team consists of approximately 30 fraud specialists and attorneys from various SEC offices, marking a streamlined approach compared to its 50-person predecessor.
CETU's primary mission encompasses investigating fraud involving artificial intelligence, social media schemes, dark web activities, blockchain technology, and unauthorized account takeovers. The unit will work alongside the SEC's recently established Crypto Task Force to develop comprehensive investor protection measures.
Acting SEC Chairman Mark Uyeda emphasized that CETU aims to balance investor protection with innovation. "The unit will root out those seeking to misuse innovation to harm investors while clearing the way for legitimate technological growth," Uyeda stated.
This restructuring reflects evolving regulatory priorities under the current administration. The SEC's approach signals a shift from previous aggressive enforcement actions against digital asset companies toward establishing clearer guidelines for the cryptocurrency industry.
D'Allaird, who previously served as counsel to SEC Commissioner Jaime Lizárraga, will oversee enforcement efforts related to both cryptocurrency and cybersecurity matters. Her team will also monitor how financial firms and public companies manage cybersecurity risks and comply with SEC regulations.
The formation of CETU comes as financial institutions face increasing cyber threats, including retail brokerage account breaches and sophisticated hacking attempts. Through this new unit, the SEC aims to create a more secure environment for digital innovation while maintaining market integrity.