Cyber and Emerging Technologies Unit ("CETU")

On February 20, 2025, the U.S. Securities and Exchange Commission ("SEC") announced the creation of the Cyber and Emerging Technologies Unit ("CETU") to focus on "combatting cyber-related misconduct and to protect retail investors from bad actors in the emerging technologies space."

The CETU, led by Laura D'Allaird, is comprised of 30 fraud specialists and attorneys across multiple SEC offices. CETU will "combat misconduct as it relates to securities transactions" in seven priority areas:

Case Design and Support
When a firm needs behind-the-scenes support to build or defend a securities case, I can:
•  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 CETU, led by Laura D'Allaird, is comprised of 30 fraud specialists and attorneys across multiple SEC offices."

The CETU will "complement" the work of the Commission's recently announced Crypto Task Force, which will be led by Commissioner Hester Peirce and will aim to develop a "comprehensive and clear regulatory framework for crypto assets."