The U.S. Securities and Exchange Commission (SEC) has just announced the establishment of the Cyber and Emerging Technologies Unit (CETU), a new dedicated unit aimed at overseeing fraud in the crypto and AI sectors, while also supporting technological innovations in a transparent manner. This is seen as an important step for the SEC under President Donald Trump, aimed at establishing a more reasonable legal framework for the blockchain and artificial intelligence industries.
CETU – The New 'Shield' Against Crypto & AI Fraud
The head of #CETU will be Laura D'Allaird, a veteran SEC official who previously played a key role in the former Crypto Assets and Cyber Unit (CACU). According to Mark Uyeda, acting SEC Chairman, the goal of CETU is not only to protect investors but also to support the fundraising process and ensure transparency in technology.
CETU will focus on issues:
🔍 AI & machine learning (ML) related fraud.
🔍 Scams through social media, fake websites & dark web.
🔍 Hacking to obtain sensitive information.
🔍 Taking over investors' trading accounts.
🔍 Fraudulent activities related to blockchain & crypto.
🔍 Cybersecurity oversight of financial institutions.
SEC's Strategic Shift Under the Trump Administration
CETU is seen as a replacement for the Crypto Assets and Cyber Unit (CACU) – a unit established in 2017 under the $TRUMP administration, but significantly expanded when Gary Gensler took over. By 2022, the SEC had doubled the CACU staff to 50 and filed over 100 lawsuits related to crypto, making this sector one of the most closely monitored under the Biden administration.
However, after Donald Trump was re-elected, #SEC began to downsize the crypto law enforcement unit. Some leadership members were reassigned to other departments, reflecting a change in the SEC's approach to this market.
With this new direction, the SEC is trying to establish a more balanced legal framework that helps comply with the law without stifling the development of blockchain and AI. This move could open up many opportunities for technology businesses in the U.S. in the near future. 🚀