Crypto
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- The SEC has unveiled a new department for fighting blockchain and crypto crimes
- Known as the “Cyber and Emerging Technologies Unit” (CETU) the unit will combat crimes in the blockchain and other emerging technologies environments
- The unit comprises fraud specialists and attorneys
The United States securities watchdog, SEC, has unveiled the “Cyber and Emerging Technologies Unit” (CETU) to combat blockchain and crypto crimes. The new department comprises fraud specialists and attorneys and replaces the existing “Crypto Assets and Cyber Unit.” Apart from crypto and blockchain, CETU will also fight crimes in other emerging technologies environments like AI, which shows the SEC’s commitment to fighting financial crimes beyond the traditional space.
Crypto SEC Protects Retail Investors
In an announcement, the SEC said the unit’s creation is part of the agency’s move “to protect retail investors from bad actors in the emerging technologies space,” adding that it will only focus on securities-related transactions.
CETU will focus on bad actors using social media, fake websites, and the dark web to perpetrate fraud. It will also go after criminals who illegally obtain private information through hacking and those who take over brokerage platforms.
The SEC unit will also enforce cybersecurity compliance for regulated firms and deal with public entities fraudulently misrepresenting their cybersecurity compliance. According to acting SEC chair Mark Uyeda, CETU will allow the agency to “deploy enforcement resources judiciously.”
Uyeda added that the unit’s mandate extends beyond protecting investors to preparing the way for innovation and facilitating “capital formation.”
Crypto SEC Developing Crypto-Centric Regulatory Framework
CETU’s formation comes roughly a month after the agency established a crypto task force to create a regulatory framework for cryptocurrencies.
It also comes a day after a former SEC attorney said the securities watchdog is likely to deprioritize crypto cases. The SEC is shifting its enforcement approach in a move likely meant to align with Donald Turmp’s positive crypto stand.
With the SEC going after bad actors in the blockchain, AI, and machine learning spaces, it’s to be seen whether the move will reduc
