The U.S. Security Exchange Commission has declared forming a new team to combat crypto fraud and other cyber crimes to protect retail investors. The date of the announcement was February 20, 2025. The new team is named the ‘Cyber and Emerging Technologies Unit’ (CETU). The purpose of the new group is to protect retail investors from fraud in the emerging technology space, along with facilitating capital formation and market efficiency.
CETU is a group of 30 fraud specialists and legal executives across multiple SEC offices. The CETU will be managed by Laura D’Allaird, a legal executive in Washington, DC. Frauds emerged from emerging technologies, with the use of social media and fallacious websites. Moreover, high rates of fraud are reported in blockchain technology and crypto assets.
Laura Takes Charge of the New SEC Unit
The new group CETU will be managed by Laura, who has been at the SEC for several years in various enforcement roles. She took up the role of Co-Chief of the Crypto Assets and Cyber Unit in the SEC’s Division of Enforcement last December, before this position, she worked as counsel to SEC Commissioner Jaime Lizárraga. The role change was made at a time of major changes in SEC regulation of crypto, a lot of changes have been made in guidelines and practical registration process.
As aforementioned,d she will be managing 30 fraud specialists and attorneys working under her. Laura will be leading the team to identify and get rid of cyber threats that exploit emerging technologies. The team prioritizes combating fraud involving artificial intelligence, blockchain technology, and machine learning and also preventing crypto-related scams.
Take of SEC on Fraud Cases
Financial technologies have created a complex regulatory ecosystem. Several actions are taken to mitigate fraud scenarios. Both federal and state government agencies are taking measures to strengthen identity verification and fraud prevention systems. Integrating third-party consumer data and device intelligence is actively practiced, and now the new group is planning to take a step ahead of the trend by extracting the team’s deep knowledge of fintech and cybersecurity.
SEC’s Legal Shifts
Securities and Exchange Commission (SEC) has created CETU after the positive developments from the agency. Recently, the SEC has dismissed its appeal of a lawsuit that challenged its dealer rule expansion. Also, they have filed cases against Binance, Lejilex, and Coinbase requesting stays. This is due to the agency’s effort to develop a crypto regulatory framework.
SEC Approves First Yield-Bearing Stablecoin Security
Yield-bearing stablecoins are different from traditional stablecoins that are attached to fiat currencies that don’t generate interest. SEC is currently showing interest in yield-bearing stablecoins. This type of stablecoin offers a return on investments. This initiative comes under financial securities, which means that issuers and investors will have to align with security regulations, protect the market, and increase transparency.
The Bottom Line
The U.S. Securities and Exchange Commission (SEC) announced the formation of a new group, the Cyber and Emerging Technologies Unit (CETU), on February 20, 2025. This is a replacement for the previous group, ‘Crypto Assets and Cyber Unit.’
This initiative is a testimonial that the agency is working to address the multifaceted challenges created by modern technologies. Laura D’Alliard will be leading the team that consists of 30 fraud specialists and attorneys across multiple SEC offices.
