The Securities and Exchange Commission (SEC) has announced the creation of the Cyber and Emerging Technologies Unit (CETU) It aims to address the complex challenges posed by emerging technologies in the financial sector.
This unit replaces the previous Crypto Assets and Cyber Unit and is led by the experienced Laura D’Allaird. It assembles over thirty fraud experts from various SEC offices alongside lawyers.
SEC Prioritizes Investor Protection
The establishment of the CETU comes at a crucial juncture for retail investment marked by the fast digitalization of financial services and the growing complexity of cyber risks.
Current data reveals the necessity of this project. For instance, the retail sector noted 629 cybersecurity events in 2022 with 241 confirmed data breaches. Driven mostly by financial gains from consumer data theft, these attacks highlight retail investor fragility in the digital era.
The threats highlight the unprecedented risks in the online marketplace and the importance of a comprehensive approach to tackling cyber-related threats.
The SEC plans to tackle these threats by focusing on a wide range of priority areas. These include emerging technology fraud, insider trading 2.0, and blockchain and crypto asset fraud.
CETU Teams up with SEC Task Forces
CETU will work alongside SEC programs, like the Crypto Task Force led by Commissioner Hester Peirce. The cooperation will implement an extensive plan resolving complex challenges of new technologies in the banking sector and cybersecurity.
Emphasizing the dual function of the new agency, acting SEC Chairman Mark T. Uyeda said,
“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow.”
The effectiveness of the cooperation will not be judged only by the quantity of frauds and bad actors it stops. But also its capacity to create an atmosphere where technical innovation may thrive free from compromise of investor safety.
Focusing on perennial and emerging hazards, the SEC seeks to remain at the forefront in investor protection.
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