The U.S. Securities and Exchange Commission (SEC) has established the Cyber and Emerging Technologies Unit (CETU) to address cyber-related misconduct and protect retail investors from technology-driven fraud.

Led by Laura D’Allaird, the CETU replaces the Crypto Assets and Cyber Unit but operates with a smaller team of about 30 fraud specialists and attorneys across multiple SEC offices. The unit’s creation aligns with the U.S. government's push to ease overly restrictive regulations in the cryptocurrency sector while ensuring investor protection.

According to SEC acting chairman Mark Uyeda, CETU’s dual focus is safeguarding investors and fostering market efficiency by supporting responsible innovation. The unit will target fraud involving emerging technologies, including artificial intelligence, machine learning, and blockchain. Its scope also covers the prevention of retail brokerage account takeovers and scams using social media, dark web platforms, and fraudulent websites.

With a lighter regulatory framework on the horizon for the cryptocurrency space, CETU faces the challenge of balancing innovation with enforcement. Its mission includes cracking down on malicious actors exploiting new technologies, ensuring that advancements in crypto and blockchain do not come at the expense of investor trust and market integrity.