🏢️The SEC under the new administration has established a new department to protect investors from cryptocurrency and artificial intelligence fraud
On Monday, the U.S. Securities and Exchange Commission (SEC) announced the establishment of a Cyber and Emerging Technologies Unit (CETU), whose main task is to combat misconduct in the fields of cryptocurrency and artificial intelligence (AI).
CETU will replace the previous Crypto Assets and Cyber Unit and will be led by Laura D'Allaird. The team is composed of about 30 professional lawyers and fraud experts from various SEC offices who will bring rich experience in fintech and cybersecurity.
SEC Acting Chairman Mark T. Uyeda emphasized the importance of the new department, noting that CETU will complement the work of the Cryptocurrency Task Force led by Commissioner Hester Peirce, aiming to protect investors, promote capital formation and market efficiency, and create an environment conducive to innovation.
CETU's work will also focus on dealing with fraudulent activities that utilize advanced technologies such as artificial intelligence and machine learning, investigating schemes through social media platforms, dark web or deceptive websites, and targeting hacking incidents and unauthorized access and manipulation of retail brokerage accounts.
In addition, the CETU will investigate fraud involving blockchain technology and crypto assets, ensure that regulated entities comply with existing cybersecurity rules, and monitor public issuers for misleading cybersecurity disclosures.
This move follows the SEC's establishment of the Cryptocurrency Working Group on January 21, 2025.
The SEC's dual regulatory strategy, combined with the efforts of the newly established CETU and the Cryptocurrency Working Group, marks a major shift in regulatory oversight under the new President Donald Trump's administration, aiming to clarify regulatory boundaries, establish a viable registration path, and ensure a reasonable disclosure framework.
This series of measures not only reflects the Trump administration's firm commitment to investor protection, but also demonstrates the SEC's determination to strike a balance between promoting market innovation and security.
💬 What do you think of the SEC's new initiatives? Do you think the SEC can ensure that it does not inhibit innovation and development in the fintech industry while promoting regulatory innovation?