On 20 February 2025, the United States Securities and Exchange Commission (US SEC) announced the creation of the Cyber and Emerging Technologies Unit (CETU). This unit replaces the Crypto Assets and Cyber Unit and will focus on combatting cyber-related misconduct and protecting retail investors from fraudulent activities in the emerging technologies sector. The CETU will be led by Laura D’Allaird and will consist of approximately 30 fraud specialists and attorneys across multiple offices of the United States SEC.
The establishment of CETU aims to enhance enforcement measures in response to the increasing risks associated with cyber-related fraud, artificial intelligence (AI), blockchain, and digital finance. The United States SEC’s CETU will leverage specialised expertise in fintech and cybersecurity to tackle securities violations in several high-risk areas. The unit’s enforcement focus includes fraudulent use of emerging technologies, such as artificial intelligence (AI) and machine learning in securities transactions; cyber-related financial fraud, including phishing schemes, dark web activities, and social media-driven scams; hacking and insider trading, specifically related to the theft of material nonpublic information (MNPI); retail brokerage account takeovers, which pose risks to investors and financial platforms, fraud involving blockchain technology and crypto assets, ensuring compliance with digital asset regulations; regulated entities’ compliance with cybersecurity laws, particularly in financial risk management and cyber governance; public issuer misrepresentation of cybersecurity risks, where companies fail to disclose material cyber incidents or vulnerabilities.
The United States SEC’s CETU will immediately begin reviewing existing investigations and initiating new enforcement actions against cyber-related financial misconduct. The unit’s framework builds on previous enforcement efforts, but with a stronger focus on emerging technologies and digital fraud detection.
Acting United States SEC Chairman Mark T. Uyeda stated: “Under Laura’s 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, the unit will not only protect investors but will 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.”
(Source: https://www.sec.gov/newsroom/press-releases/2025-42)
