SEC Launches Unit to Tackle Fraud in AI, Blockchain, and Crypto
As part of an ongoing effort to support digital assets, the U.S. Securities and Exchange Commission (SEC) has launched a new cyber division to combat cryptocurrency fraud. Agent Announce Create Networks and Emerging Technology Units (CETUs) to focus on combating network-related misconduct and protect retail investors from bad actors in emerging technology fields.
It is worth noting that the CETU, led by Laura D’Allaird, replaced the Crypto asset and network unit, consisting of approximately 30 fraud experts and lawyers from multiple SEC offices.
“Under Laura’s leadership, this new department will complement the work of the crypto task force led by Commissioner Hester Peirce. Importantly, the new department will also allow the SEC to deploy law enforcement wisely. Resources.” Acting Chairman Mark T. Uyeda said.
The SEC’s New Network and Emerging Technology Division (CETU) is designed to protect investors and promote innovation. The department will focus on stopping fraud involving emerging technologies such as AI, blockchain and cryptocurrencies. It will target issues such as fraud via social media, hacking private information, and acquisition of brokerage accounts. CETU will also ensure that companies comply with cybersecurity rules and prevent false cybersecurity disclosures. The purpose is to ensure market security while allowing new technologies to develop.
In addition, the CETU will also align with the work done by Republican Commissioner Hester Peirce within the newly formed crypto task force. Peirce recently outlined the task force’s priorities, including categorizing some tokens as “non-security.”
In recent years, the SEC has adopted a gradual industry regulatory strategy and has taken a difficult approach to the cryptocurrency industry, thus slowing down industry growth. But in 2025, things have changed with elections and policy shifts in pro-Creputo President Donald Trump. The SEC stated in its establishment of Peirce’s task force that its goal is to guide the agency to a wise regulatory path that respects legal boundaries.
