The U.S. Securities and Exchange Commission (SEC) has launched a new unit named the Cyber and Emerging Technologies Unit (CETU) as part of its structural changes. This unit replaces the previous Digital Assets and Cyber Security Division and consists of around 30 legal and anti-fraud experts from various SEC offices. CETU will oversee a wide range of technology-related violations, including AI-based frauds, deceptive schemes on social networks and the dark web, and hacking of sensitive financial information. Additionally, attacks on brokerage accounts and crypto frauds will be closely scrutinized by this SEC unit. Companies that fail to properly disclose their cybersecurity risks may face legal consequences. Laura DeAlard, who previously served as co-chief of the Digital Assets and Cyber Security Division, is now leading this new unit. She has extensive experience at the SEC and has worked as an advisor to Commissioner Hester Peirce and as an executive manager of the organization. These changes come as SEC has been reviewing its approach to regulating the crypto market since January this year. Mark Oveda was appointed as the interim chairman of the commission last month, and one of his key actions was to close the dedicated crypto law enforcement unit and establish a new structure from scratch. The message of these changes is clear: innovation in financial markets is welcomed, but abusers of new technologies will not go unanswered.
