The U.S. Securities and Exchange Commission (SEC) has established the Cyber and Emerging Technologies Unit (CETU) to enhance enforcement against cyber-related misconduct and protect retail investors from fraud in the evolving digital space.

The new unit, replacing the Crypto Assets and Cyber Unit, will be led by Laura D’Allaird and will consist of approximately 30 fraud specialists and attorneys across various SEC offices.

In an official report published on Feb. 20, Acting SEC Chairman Mark T. Uyeda emphasized the unit’s critical role in safeguarding investors while fostering innovation. “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,” Uyeda stated.

He further noted that CETU would help clear the path for legitimate technological advancements while identifying and addressing those exploiting innovation to defraud investors.

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CETU will concentrate on a range of cyber-related violations, including fraud using artificial intelligence and machine learning, schemes leveraging social media and the dark web, hacking incidents targeting material nonpublic information, retail brokerage account takeovers, blockchain and crypto asset fraud, and compliance with cybersecurity regulations among regulated entities. Additionally, the unit will scrutinize misleading public disclosures related to cybersecurity risks.

With cyber threats and emerging technologies increasingly shaping the financial sector, the SEC’s latest move appears to reflect its focus on investor protection and market integrity. The agency has stated that it aims to strengthen regulatory oversight while ensuring that new technologies contribute to a fair and secure investment environment.