The U.S. Securities and Exchange Commission (SEC) is taking another step forward in its regulatory strategy with the creation of a unit dedicated to emerging technologies. The authority announced on February 20 the creation of the “Cyber and Emerging Technologies Unit” (CETU), a new specialized division aimed at strengthening the protection of retail investors against crypto-related fraud and other cyber threats.
Table of Contents
SEC launches elite new fraud unit
Against a backdrop of increasing crypto fraud, the SEC has decided to significantly strengthen its surveillance system. The authority has announced on Thursday, the creation of the “Cyber and Emerging Technologies Unit “(CETU), a specialized unit that succeeds the former “Crypto Assets and Cyber Unit” with extended prerogatives.
This new structure benefits from a strengthened team of around thirty fraud experts and specialist lawyers, strategically located in the various SEC offices. At its head, Laura D’Allaird, who forged her expertise as advisor to the Democratic commissioner Jaime Lizárraga.
Mark Uyeda, Acting Chairman of the SEC, sees the CETU as an instrument for balancing regulation and development:
Not only will it protect investors, but it will also facilitate capital formation and market efficiency, paving the way for the growth of innovation.
A broader mandate in the face of new threats
The CETU will focus its efforts on several priority areas, including the fight against fraud involving blockchain technology and cryptos. Its scope will also cover the fraudulent use of social media and fake websites to perpetrate financial scams.
This initiative comes against a backdrop of recent incidents. Recently, the zkLend was the victim of an attack on the Starknet network, resulting in a loss of $9.5 million. More generally, the crypto sector recorded losses of $73 million in January alone. The SEC’s new approach marks a turning point in the regulation of the sector. Since January, under the impetus of Commissioner Hester Peirce, the authority has adopted a more constructive strategy, notably with the creation of a working group dedicated to digital assets.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
