Michaela
The U.S. Securities and Exchange Commission (SEC) has unvΠ΅iled a dedicated unit aimed at combating crypto fraud and cyber crimes, with a focus on protecting retail investors in emerging technology sectors.
A recent press release announced the creation of the Cyber and Emerging Technologies Unit (CETU), led by Laura DβAllaird. The new division, which replaces the Crypto Assets and Cyber Unit, brings together around 30 fraud specialists and attorneys from multiple SEC offices to strengthen enforcement against emerging technology fraud.
βUnder Lauraβs leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously,β said SEC Acting Chairman Mark T. Uyeda.
According to DβAllairdβs LinkedIn profile, the seasoned attorney is also counsel to SEC Commissioner Jaime LizΓ‘rraga.
The CETU aims not only to shield investors but also to boost capital formation and enhance market efficiency, paving the way for new innovations. Its mandate includes targeting Π°nd dismantling schemes that exploit emerging technologies to defraud investors and erode confidence.
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Moreover, the CETU will leverage its extensive fintech and cybersecurity expertise to target misconduct in securities transactions. Its focus includes fraud using emerging technologies like artificial intelligence and machine learning, as well as deceptive practices perpetrated via social media, the dark web, or fraudulent websites.
It will also address hacking incidents aimed at accessing material nonpublic information, unauthorized takeovers of retail brokerage accounts, and fraudulent schemes involving blockchain technology and crypto assets.
Furthermore, the CETU will ensure that regulated entities comply with cybersecurity rules and will scrutinize any fraudulent disclΠΎsures by public issuers related to cybersecurity.
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With the CETU in plΠ°ce, the SEC is taking a decisive step toward protecting investors in an era of rapid technological innovation. The unit’s broad mandate β from combating AI-driven fraud to enforcing cybersecurity standards β stresses the agencyβs commitment to preemptively address risks in the digital marketplace.
As new technologies continue to reshape financial markets, CETUβs proactive measures may play a crucial role in maintaining market integrity and boosting investor confidence.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
