The Securities and Exchange Commission is revamping its efforts to respond to cybersecurity threats, announcing recently that it has created the Cyber and Emerging Technologies Unit (CETU).
The SEC said the new unit will focus on cyber-related misconduct and protecting retail investors from bad actors operating in the area of emerging technologies.
Led by Laura D’Allaird, the CETU will replace the Crypto Assets and Cyber Unit. It will be comprised of about 30 fraud specialists and attorneys across multiple 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. “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.”
The SEC said that the CETU will use the staff’s fintech and cyber-related experience to combat misconduct related 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
The SEC has said it is committed to working with federal and local partners, market participants, and others to monitor developments and effectively respond to cyber threats.
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