Key takeout
- The SEC will create cyber and new technology units led by Laura Dalayard to combat cyber-related fraud.
- CETU focuses on fraud, including AI, social media, the dark web and blockchain technology, protecting retail investors.
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The US SEC established the Cyber and Emerging Technology Unit (CETU) on Thursday to combat cyber-related fraud and protect retail investors from the threat of emerging technology. Leading by Laura D'Allaird, CETU is made up of around 30 fraud experts and lawyers who have been pulled from the SEC office, replacing the agency's previous crypto assets and cyber units.
The move illustrates the SEC's broader regulatory push in the face of rapidly evolving technologies. The newly formed units prioritize a variety of cyber-related threats affecting the financial industry.
Key focus areas include increasing use of fraudulent artificial intelligence and machine learning Scheme, The scam was carried out through social media, the dark web, or deceptive websites, and hacking activities aimed at obtaining material private information.
CETU also addresses rising issues with retail broker accounts Acquisition, Frauds that include blockchain technology and crypto assets, cybersecurity compliance by regulated entities, and fraudulent disclosures by public companies regarding cybersecurity incidents.
“Under Laura's leadership, this new unit will complement the work of the Cryptocratic Task Force, led by Commissioner Hester Perth,” said foreman Mark Weda. “This unit not only protects investors, but also promotes capital formation and market efficiency by clearing the way innovation grows. It will exploit innovation to harm investors. It will eradicate those who are saying that and reduce trust in new technologies.”
D'Allaird, along with Mark Sylvester, took on the role of co-head of Crypto Assets and Cyber Unit in the SEC's executive division last December. Prior to this position, she served as attorney for SEC committee member Jaime Lizaraga.
D'Allaird is responsible for overseeing SEC enforcement efforts related to crypto and cybersecurity issues. Her appointment comes at the time of major changes in SEC regulations for crypto, and the agency shifts to clearer guidelines and actual registration processes.
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