The SEC Unveils the Cyber and Emerging Technologies Unit

February 21, 2025

What happened?

On February 20, 2025, the SEC announced the creation of the Cyber and Emerging Technologies Unit (“CETU”), replacing the existing Crypto Assets and Cyber Unit, in an effort to combat cyber-related misconduct and to protect retail investors from bad actors in the technologies space.

The CETU is led by Laura D’Allaird and staffed with approximately 30 fraud specialists and attorneys throughout multiple SEC offices. “Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously,” said Acting Chairman Mark T. Uyeda.

The CETU will combat misconduct specifically as it relates to securities transactions in the following areas:

• Fraud committed using emerging technologies, such as artificial intelligence and machine learning;
• Use of social media, the dark web, or false websites to perpetrate fraud;
• Hacking to obtain material nonpublic information;
• Takeover of retail brokerage accounts;
• Fraud involving blockchain technology and crypto assets;
• Regulated entities’ compliance with cybersecurity rules and regulations; and
• Public issuer fraudulent disclosure relating to cybersecurity.

What does this mean for me?

As predicted, the Commission is focused on protecting retail investors while supporting innovation and market efficiency. Following a record Q1 for enforcement actions, the creation of the CETU emphasizes the SEC’s ongoing commitment in holding bad actors accountable and protecting retail investors.  Despite the change in administration, firms should remain vigilant in complying with regulatory requirements and industry best practices.

Fairview Cyber offers turnkey solutions that address SEC requirements for cybersecurity, including dark web scanning, vulnerability assessments, and more. Our team of regulatory experts are available to answer any questions you may have. To learn more, visit our Cyber Solutions page or contact us if you’d like to speak to one of our regulatory experts.