- The SEC has renamed its Division of Crypto Assets and Cyber Unit (CACU) to the Cyber and Emerging Technologies Unit (CETU).
- CETU will focus on combating cryptocurrency fraud and cybercrime, among other priorities.
The U.S. Securities and Exchange Commission has announced a new enforcement division focused on fighting cryptocurrency-related fraud and cybercrime. In a press release on February 20, the SEC said it had established the Cyber and Emerging Technologies Unit (CETU). The unit’s mission is to combat cyber-related crimes across rapidly developing emerging technology sectors.
SEC’s new unit to complement existing crypto task force
CETU replaces the SEC’s former Crypto Assets and Cyber Unit (CACU) and will focus on enforcing compliance to protect retail investors. The agency named Laura D’Aleardo to lead the CETU team, which will include roughly 30 investigators and attorneys specializing in fraud. The press release noted that these professionals will be drawn from multiple SEC offices.
Acting SEC Chair Mark T. Uyeda said the new unit will complement efforts of the recently launched crypto task force. That task force, announced in January 2015 and led by Commissioner Hester Peirce, has guided the agency’s approach to digital asset enforcement. Uyeda stated that CETU will help the SEC deploy enforcement resources more strategically. He added that the unit will not only protect investors but also help foster capital formation and market efficiency by clearing a path for responsible innovation. “We will root out those who exploit innovation to harm investors and undermine confidence in new technologies,” he said.
CETU’s priorities will include cryptocurrencies, blockchain, artificial intelligence and machine learning, social media-related misconduct, activity on the dark web, and scams conducted through fake websites. The unit will also monitor hackers and incidents involving the takeover of individual brokerage accounts. In addition to criminal and civil enforcement work, the SEC said the Enforcement Division has authority to investigate failures to comply with cybersecurity regulations.
By consolidating cyber and emerging technology expertise in one unit, the SEC aims to respond more effectively to evolving threats that intersect with capital markets. CETU’s cross-disciplinary team is intended to enhance the agency’s ability to identify complex schemes, pursue enforcement actions when warranted, and coordinate with other government entities to protect investors and preserve market integrity. The move reflects a broader regulatory emphasis on addressing the risks posed by new technologies as digital asset markets and related cyber threats continue to grow and evolve.
Overall, the creation of CETU signals the SEC’s intent to sharpen its focus on enforcement in areas where technology-driven misconduct can inflict significant investor harm. The unit’s work will involve investigating and litigating cases, developing technical expertise, and supporting the SEC’s mission to maintain fair, orderly, and efficient markets.