The U.S. Securities and Exchange Commission (SEC) has set up a new unit to fight fraud in crypto, artificial intelligence (AI), and other new technologies.
The unit, called the Cyber and Emerging Technologies Unit (CETU), was announced today, and it is going to replace the Crypto Assets and Cyber Unit, which was created in 2017 and expanded in 2022. The SEC says CETU will focus on stopping scams and making sure companies follow the rules in fast-changing digital markets.
According to the announcement, Laura D’Allaird will lead CETU. She has worked at the SEC for years and was previously co-chief of the Crypto Assets and Cyber Unit. She was also a legal advisor to former SEC Commissioner Jaime Lizárraga.
CETU will have about 30 experts in fraud and law from different SEC offices. The team will investigate fraud using AI, crypto scams, hacking, and false cybersecurity claims by companies.
“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow,” said SEC Acting Chairman Mark Uyeda. He said CETU will go after bad actors who use new tech to trick investors. He also said the SEC wants to make sure people can trust digital markets while following the rules.
Additionally, CETU will work with the Crypto Task Force, which was set up in January and run by Republican Commissioner Hester Peirce. CETU will focus on fraud, while Peirce’s team will work on making crypto rules easier to understand. Peirce has said she wants to make it simpler for crypto companies to register so they can keep innovating without confusion.
This change comes under the new Trump administration, which has a different approach than former SEC Chair Gary Gensler. Gensler was strict on crypto. He saw most tokens as securities that needed regulation. Uyeda, however, suggests the SEC look for a more balanced approach, making sure investors are safe while allowing new technology to grow.
CETU will also investigate fraud using social media, fake websites, and hidden sites on the dark web. Other targets include hacking to steal private financial info and scams where criminals take over brokerage accounts. The SEC says it will also check if regulated companies are following cybersecurity rules and punish those that don’t.
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