SEC’s Cyber and Emerging Technologies Unit (CETU)
The US Securities and Exchange Commission (SEC) announces the creation of a new unit dedicated to combatting fraud in the cryptocurrency and artificial intelligence sectors. The Cyber and Emerging Technologies Unit (CETU) replaces the former Crypto Assets and Cyber Unit established in 2022 under the Biden administration. This strategic shift reflects the new Trump administration’s vision for financial market regulation.
Laura D’Allaird Takes the Helm
Laura D’Allaird, a key figure in the SEC and former co-director of the crypto-cyber unit, has been appointed as the head of CETU. With her expertise in regulating new technologies, she will play a crucial role in this new mission.
Striking a Balance between Investor Protection and Innovation Support
CETU’s role goes beyond identifying and penalizing fraud. According to Mark Uyeda, the SEC’s interim chairman, CETU will also aim to “facilitate capital formation and market efficiency while embracing innovation.” The goal is to find a balance between regulating emerging sectors and encouraging technological development.
A New Regulatory Framework under the Trump Administration
The launch of CETU is part of the SEC’s broader transformation under the new administration. The era of Gary Gensler’s strict approach to cryptocurrencies, classifying many tokens as securities, appears to be coming to an end. Now, the emphasis is on a regulation that is “reasonable and respectful of legal boundaries,” according to the SEC’s official statement.
This announcement also follows the LIBRA scandal, a memecoin promoted by the Argentine president that cost investors hundreds of millions of dollars.
Collaboration with Hester Peirce’s Crypto Task Force
CETU will work in synergy with the Crypto Task Force established by Republican Commissioner Hester Peirce. Peirce aims to clarify the status of digital assets and exempt some of them from the strict securities regime. This approach could provide a breather for industry players after years of regulatory uncertainty.
