SEC Launches New Unit to Combat Emerging Tech Misconduct

The U.S. Securities and Exchange Commission (SEC) has announced the creation of a new Cyber and Emerging Technologies Unit (CETU) to complement its existing Crypto Task Force. The new unit, led by Laura D’Allaird, will replace the old Crypto Assets and Cyber Unit and focus on combating misconduct related to securities in various emerging technologies, including fraud, social media and dark web fraud, hacking, brokerage account takeovers, crypto fraud, cybersecurity compliance, and cybersecurity fraud.

Acting Chairman Mark T. Uyeda emphasized the importance of the new unit in protecting investors while also facilitating capital formation and market efficiency. The unit will work to root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies. One of CETU's primary aims will be to complement the work of the SEC's Crypto Task Force, led by Commissioner Hester Pierce, in combating crypto fraud.

Earlier this week, Commissioner Pierce sent a warning to memecoin traders, cautioning them not to assume that the SEC would provide a regulatory backstop for all popular cryptocurrencies. She emphasized that just because a cryptocurrency is popular does not mean it falls within the SEC's jurisdiction.

The creation of CETU reflects the SEC's commitment to addressing the evolving landscape of emerging technologies and their impact on the securities market. By combining enforcement resources and expertise, the new unit will help protect investors and promote innovation in the sector.