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The U.S. Securities and Exchange Commission (SEC) has launched the Cyber and Emerging Technologies Unit (CETU) to strengthen its efforts against cyber-related misconduct and safeguard retail investors from risks associated with artificial intelligence (AI) and digital fraud.
Replacing the Crypto Assets and Cyber Unit, the CETU is led by Laura D’Allaird and consists of approximately 30 fraud specialists and attorneys spread across various SEC offices. This restructuring signals a shift in regulatory priorities, reflecting a more flexible approach toward cryptocurrency oversight while reinforcing investor protection.
Mark Uyeda, the SEC’s acting chairman, emphasized that the CETU aims to balance innovation and security. He stated, “The unit will not only protect investors but 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’s primary focus includes investigating fraudulent activities leveraging emerging technologies such as AI and machine learning, hacking attempts on retail brokerage accounts, and deceptive schemes using social media, the dark web, and fraudulent websites.
With less restrictive regulations anticipated for the cryptocurrency sector, supported by a strong government lobby, the CETU faces an uphill battle in addressing fraud within blockchain technology and crypto assets. Its mission will be to mitigate financial crime risks while allowing legitimate technological advancements to flourish.
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