SEC Has a New Unit to Tackle Crypto and AI Fraud

New Unit to Combat Tech-Driven Scams

The U.S. Securities and Exchange Commission (SEC) has launched the Cyber and Emerging Technologies Unit (CETU) to combat cyber fraud and protect investors from evolving threats in artificial intelligence (AI) and blockchain technology.

Replacing the Crypto Assets and Cyber Unit

Led by Laura D’Allaird, CETU replaces the SEC’s previous Crypto Assets and Cyber Unit. The new division consists of about 30 fraud specialists and attorneys from various SEC offices.

Focus Areas

CETU will investigate fraud involving AI-driven scams, social media schemes, and hacking activities that target confidential financial information. The unit will also address:

Retail brokerage account takeovers
Crypto-related fraud and blockchain scams
Cybersecurity compliance for regulated firms
False cybersecurity disclosures by public companies

SEC’s Broader Regulatory Shift

SEC Acting Chairman Mark Uyeda stated that CETU will not only protect investors but also support innovation by eliminating bad actors who misuse new technologies. The unit will work alongside the Crypto Task Force, led by Commissioner Hester Peirce, to enhance market security.

D’Allaird, who previously co-led the Crypto Assets and Cyber Unit, now oversees the SEC’s enforcement efforts in crypto and cybersecurity. Her appointment reflects the agency’s shift toward clearer regulations and practical registration guidelines for the crypto industry.