SEC sets up a new department CETU! Targeted to combat AI fraud, blockchain and cryptocurrency crimes

The U.S. Securities and Exchange Commission (SEC) officially launched the "Cyber ​​and Emerging Technology Division" (CETU) on February 20, 2025, aiming to combat cybersecurity-related violations and protect investors from fraud in emerging technology fields. The department, led by Laura D'Allaird, integrates resources from the original crypto assets and networking sectors, bringing together about 30 experts from various SEC departments.

SEC Acting Chairman Mark T. Uyeda said that CETU will work with the cryptoasset task force to ensure the effective allocation of law enforcement resources, with the goal of protecting investors, promoting capital formation, maintaining market efficiency, and supporting innovative and healthy development.

CETU focuses on crackdown areas: Artificial intelligence fraud, social media fraud, blockchain crime, etc.

CETU’s expert team will use its expertise in fintech and cybersecurity to focus on the following categories of securities trading violations:

1. Use AI and machine learning for financial fraud: Crack down on the use of advanced technologies to manipulate markets or deceive investors.

2. Social media, dark web and fake website scams: Curb the spread of false information through online platforms and mislead investors.

3. Stolen Unpublished Information: Combating hackers' attacks on stealing internal transaction information or unpublished financial data.

4. Invade retail brokerage accounts and steal investor assets: Strengthen supervision to prevent hackers from causing losses to investors' assets.

5. Monitor blockchain and crypto asset fraud: Severely crack down on false ICOs, crypto asset Ponzi schemes, etc.

6. Cybersecurity compliance of financial institutions: Supervise whether financial institutions comply with cybersecurity regulations and protect investor data security.

7. Cybersecurity risk information disclosure of listed companies: Ensure listed companies disclose network security risks honestly and transparently, and avoid concealing security breaches or attacks.

SEC strengthens supervision and balances innovation and security

SEC established CETU to combat market malicious behavior and create a safer and fairer investment environment for the development of emerging technologies. Faced with the rapid development of AI, blockchain and digital finance, the SEC will continue to strengthen supervision to ensure innovation develops under the framework of compliance and security, and protect investors from fraud in emerging technology fields.

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