SEC founds new cyber and technology unit to protect investors

The US stock exchange supervision SEC launched the cyber and emerging technology Unit (CetU) to combat fraud with emerging technologies. The unit replaces the previous crypto department and is intended to protect investors from cyber attacks and abuse by artificial intelligence and blockchain.

The CETU will concentrate on combating misconduct in connection with emerging technologies, including fraud with artificial intelligence, machine learning and blockchain technologies. Another focus is on the monitoring of cyber attacks that aim to steal confidential information on or take on trade accounts from private investors.

Management and cooperation

Laura d'Allaird, the new director of the CetU, has extensive experience in the field of cybersecurity and financial technology. Under her leadership, the unit will work closely with the crypto task force led by Commissioner Hester Peirce. This cooperation is intended to ensure that the SEC effectively uses its enforcement resources and ensures both the protection of investors and the promotion of innovations.

The cetu will concentrate on several core areas:

• Fraud with emerging technologies: Examination of cases in which technologies such as artificial intelligence and machine learning are used for fraudulent activities.
• Misuse of online platforms: Covering of fraud, which is carried out via social media that is carried out by Dark Web or fake websites.
• Cyber ​​attacks: Combating hacking attacks that aim to obtain non-public information about obtaining or dealing with trade accounts from private investors.
• Fraud in connection with blockchain and crypto-assets: monitoring and implementation of measures against fraudulent activities in the field of cryptocurrencies.
• Compliance with cybersecurity regulations: Ensure that regulated companies comply with the applicable cybersecurity rules and regulations.
• Disclosure of cybersecurity risks: Checking the transparency of companies with regard to their cybersecurity measures and risks.

No legal industry

Under the government of Donald Trump, the SEC withdraws from the strict regulation of the crypto market. Specialized units to enforce complaints have been reduced and new leaders who are more open to the industry have implemented a more liberal policy. However, this does not mean that a legal space for fraudsters is created. In particular, influencers who have cheated their followers over the past few weeks should stay on the hat.

“Under Laura's leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. It is important that the new unit also enables the SEC to use its enforcement resources carefully. The unit will not only protect investors, but also promote capital formation and market efficiency by paving the way for innovations. Use innovations to harm investors and undermine trust in new technologies. ” – Mark T. Uyeda, reigning chairman of the Sec