- The SEC has renamed its Division of Enforcement unit from the Crypto Assets and Cyber Unit (CACU) to the Cyber and Emerging Technologies Unit (CETU).
- CETU will focus on combating crypto fraud and cybercrime among other responsibilities.
The U.S. Securities and Exchange Commission has unveiled a new Division of Enforcement unit dedicated to tackling crypto-related fraud and cybercrime.
The SEC announced the formation of the new unit on February 20. In a press release, the agency said it established the Cyber and Emerging Technologies Unit (CETU).
The unit’s mission will be to address cyber-related criminal activity within the broader emerging technologies space.
New SEC unit to complement the crypto task force
CETU succeeds the SEC’s Crypto Assets and Cyber Unit (CACU). Its core responsibility will be enforcing compliance with the objective of protecting retail investors.
Laura D’Allaird will lead the CETU team, which will include roughly 30 fraud specialists and attorneys, the regulator announced.
The press release stated these specialists and attorneys will be drawn from multiple SEC offices. Acting SEC Chair Mark T. Uyeda said the unit will complement the agency’s recently launched Crypto Task Force.
The Crypto Task Force, announced in January 2015 and led by Commissioner Hester Peirce, will have its work augmented by the new unit’s efforts.
Uyeda noted that CETU’s activities “will enable the SEC to deploy enforcement resources thoughtfully.”
He added: “The unit will not only protect investors, it will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will target those who seek to exploit innovation to harm investors and undermine confidence in new technologies.”
Priority areas for the new unit include fraud conducted through crypto and blockchain, abuses involving artificial intelligence and machine learning, scams on social media, activities on the dark web, and fraudulent or imitation websites. Hackers and incidents involving the takeover of retail brokerage accounts will also be on CETU’s radar.
The SEC has also given the enforcement unit authority to investigate potential violations of cybersecurity rules and regulations.