US SEC introduces new unit aiming to combat cyber-related crimes

The US Securities and Exchange Commission (SEC) has formed an all-new Cyber and Emerging Technologies Unit (CETU) that aims to combat cyber-related misconduct.

The new department replaces the former Crypto Assets and Cyber Unit and will have a focus on protecting retail investors from bad actors in the emerging technologies space.

It will be led by Laura D’Alliard who was promoted to Co-Chief of the old Crypto Assets and Cyber Unit in December of 2024. She will be joined by around 30 fraud specialists and attorneys across a number of SEC offices.

“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,” said Acting Chairman Mark T. Uyeda in a press release.

“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.”

A number of priority areas have already been identified by the SEC, with these including ‘fraud committed using emerging technologies, such as artificial intelligence and machine learning’ and ‘use of social media, the dark web, or false websites to perpetrate fraud.’

Others are ‘hacking to obtain material nonpublic information,’ ‘takeovers of retail brokerage accounts,’ ‘fraud involving blockchain technology and crypto assets,’ ‘regulated entities’ compliance with cybersecurity rules and regulations,’ and ‘public issuer fraudulent disclosure relating to cybersecurity.’

This newly introduced unit comes after President Donald Trump signed an executive order on Tuesday (February 18) to rein in agencies. Within the fact sheet, the SEC is called out specifically as it states it has “exercised enormous power over the American people without Presidential oversight.”

The move now states “they will no longer impose rules on the American people without oversight or accountability,” with several other agencies included like the Federal Trade Commission and Federal Communications Commission.

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