The U.S. SEC has introduced the Cyber and Emerging Technologies Unit to strengthen oversight in digital markets and address cyber-related misconduct.
This development follows leadership changes at the agency after U.S. President Donald Trump appointed Mark Uyeda as acting chair.
The CETU will focus on protecting retail investors while reinforcing compliance measures for regulated entities. Laura D’Allaird will lead this new unit, which will replace the Crypto Assets and Cyber Unit.
Notably, it will include around 30 fraud specialists and attorneys across multiple SEC offices. The unit plans to leverage its team’s extensive background in fintech and cybersecurity to address misconduct in securities transactions.
CETU’s Role in Emerging Technology Oversight
Furthermore, the CETU will prioritize enforcement actions against fraudulent activities involving artificial intelligence, machine learning, and blockchain-based assets. It will also investigate schemes leveraging social media, the dark web, or deceptive websites to mislead investors.
Additionally, the unit will monitor cybersecurity compliance among regulated entities and scrutinize public issuer disclosures related to cyber threats. In the acting chairman’s words;
“The unit will protect investors and will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will eliminate those seeking to misuse innovation to hurt investors and diminish trust in new technologies.”
Notably, CETU will work alongside the Crypto Task Force, led by Commissioner Hester Peirce, to streamline enforcement strategies.
Binance Lawsuit Paused for Regulatory Review
This news comes only a week after a federal judge in Washington, D.C., approved a temporary halt to the SEC’s lawsuit against Binance, granting a joint request by both parties.
Specifically, U.S. District Judge Amy Berman Jackson issued a 60-day stay, allowing time for a newly formed SEC task force to assess crypto regulations and their potential impact on ongoing enforcement cases.
Notably, the lawsuit accused of Binance deceptive practices, including inflating trading volumes and mismanaging customer funds. The SEC previously maintained that Binance listed crypto assets as securities without proper registration.
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