The U.S. securities regulator has created the Cybersecurity and Emerging Technologies Unit (CETU) to focus on combating cyberattacks and protecting retail investors from “malicious actors in the emerging technologies space,” the SEC announced in a statement.
The new department replaces the Cybersecurity and Crypto Assets Unit and is led by Laura D’Allaird. It consists of approximately 30 fraud specialists and attorneys from multiple SEC offices.
“Under Laura’s leadership, this new unit will complement the work of the Crypto Assets Task Force, led by Commissioner Hester Peirce,” stated Mark T. Uyeda, the SEC’s interim chairman, in the announcement.
D’Allaird was previously Co-Director of the Cybersecurity and Crypto Assets Unit. According to her LinkedIn profile, she has been with the SEC since 2016 and has also served as an advisor to SEC Commissioner Jaime Lizárraga, a member of the Democratic Party.
“The unit will not only protect investors but also facilitate capital formation and market efficiency, paving the way for innovation to grow. It will root out those who seek to misuse innovation to harm investors and undermine confidence in new technologies,” added Uyeda.
Uyeda’s appointment—a known cryptocurrency supporter—as interim SEC chairman suggested a likely easing of the regulator’s policy on digital assets. He is expected to hold the position until Trump’s nominee to succeed Gary Gensler, Paul Atkins, completes his confirmation process in the Senate.
According to the SEC’s official statement, CETU will leverage “the staff’s considerable expertise in financial and cyber technology to combat misconduct related to securities transactions” across several priority areas. These include fraud involving emerging technologies such as artificial intelligence and machine learning, the use of social media or fake websites to commit fraud, hacking to obtain material non-public information, the takeover of retail brokerage accounts, and fraud related to blockchain technology and crypto assets.
