U.S. Securities and Exchange Commission (SEC) has announced creation of a new unit to fight cryptocurrency and artificial intelligence (AI) related investment scams. And this new team, the Cyber and Emerging technologies Unit, or the CETU, will investigate fraud concerning these new technologies.
Why was CETU Created?
CETU replaced an old SEC unit named Crypto Assets and Cyber Unit, which had been created in 2022. The aim is to bring criminals to a halt that implement AI, blockchain and social media to scam investors. The SEC wants to be taken more seriously, taking stronger action as the world loses money to fraud in crypto and AI.
Who is Leading CETU?
CETU has selected Laura D’Allaird to lead it. For many years she has worked at the SEC and is familiar with handling financial fraud cases. She has about 30 lawyers and experts in cybersecurity and fintech (financial technology) on her team.
What will CETU Do?
CETU will focus on several key areas:
- Stopping AI and Crypto Fraud: Sometimes, scammers use AI and machine learning to make fake investment opportunities. Such fraud will be investigated and action will be taken against it by CETU.
- Protecting Online Investors: It will also track even if those scams are taking place on social media, dark web or other fake websites that are deceiving people with fake projects to invest their money.
- Preventing Hacking and Data Theft: It will also take stock of hackers who attempt to swindle the important financial information or to seize the people’s brokerage account.
- Ensuring Companies Follow Cybersecurity Rules: In fact, many crypto companies must follow SEC regulations. CETU will guarantee that they follow the law and says honest information to the investors.
SEC’s Bigger Plan
The new unit is just a part of the broader plan of the SEC to regulate the crypto. Although Commissioner Hester Peirce is recently in charge of the new SEC Crypto Task Force, they are just getting started. The task force will join CETU to ensure cryptocurrency is safer for investors.
The SEC is changing its outlook, with the new Trump administration. Instead of simply attacking crypto, it is now trying to come up with a rule book that both promotes innovation and protects investors.
Through these efforts, the SEC is attempting to make the crypto and AI industries safer and more trustworthy.
Also read: US Senate Confirms Bitcoin Advocate Howard Lutnick as Commerce Secretary
