SEC Forms New "Cyber and Emerging Technologies Unit"

The SEC formed a new Cyber and Emerging Technologies Unit ("CETU") "to focus on combatting cyber-related misconduct and to protect retail investors from bad actors in the emerging technologies space." The CETU replaces the former Crypto Assets and Cyber Unit.

According to the release, the CETU will be led by Laura D'Allaird, former Counsel to former SEC Commissioner Jaime Lizárraga. The SEC said the CETU will be comprised of "approximately 30 fraud specialists and attorneys across multiple SEC offices."

The SEC said the CETU will "combat misconduct as it relates to securities transactions" in the following priority areas:

• "Fraud committed using emerging technologies, such as artificial intelligence and machine learning
• Use of social media, the dark web, or false websites to perpetrate fraud
• 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
• Public issuer fraudulent disclosure relating to cybersecurity."