The Securities and Exchange Commission said Thursday that it has launched the Cyber and Emerging Technologies Unit, or CETU, to fight cyber-related misconduct, such as takeovers of retail brokerage accounts. The unit, led by Laura D’Allaird, replaces the Crypto Assets and Cyber Unit.
“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce," SEC Acting Chairman Mark Uyeda said in a statement. "Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously. 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.”
CETU consists of approximately 30 fraud specialists and attorneys across multiple SEC offices. The SEC said in late January that it will launch a cryptocurrency-focused task force, led by Peirce, to come up with ways to regulate the market.
Specifically, the SEC said that CETU will utilize the staff’s substantial fintech and cyber-related experience to combat misconduct as it relates to securities transactions in the following areas:
- Fraud committed using emerging technologies, such as artificial intelligence and machine learning
- Use of social media, the dark web, or false websites to perpetrate fraud
- Hacking to obtain material nonpublic information
- Takeovers of retail brokerage accounts
- Fraud involving blockchain technology and crypto assets
- Regulated entities’ compliance with cybersecurity rules and regulations
- Public issuer fraudulent disclosure relating to cybersecurity
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.