Hester Peirce’s SEC Crypto Task Force is launching the Cyber and Emerging Technologies Unit (CETU) to combat Web3-related crimes. The CETU, which replaces Gary Gensler’s Crypto Assets and Cyber Unit, will focus on tackling criminal activities involving AI and other emerging technologies.
While collaborating closely with the Crypto Task Force, the CETU's main emphasis will not be on crypto-specific enforcement. Instead, its primary objective will be addressing the misuse of AI for criminal purposes, alongside other tech-related offenses.
The SEC remains committed to combating crypto crime following Gary Gensler's departure and the subsequent changes in federal crypto regulation. Despite recent shifts in enforcement actions, the SEC is establishing the CETU to reinforce its efforts in fighting financial crimes involving innovative technologies.
Led by Laura D’Allaird and comprising a team of legal and fraud experts, the CETU will concentrate on investigating crimes associated with Web3 technologies. This strategic move aims to safeguard investors, promote market efficiency, and foster innovation by combating illicit activities that undermine confidence in new technologies.
The establishment of the CETU underscores the SEC’s continued commitment to enforcement, as emphasized by Acting Chair Uyeda. While working in conjunction with the Crypto Task Force, the CETU's mandate extends beyond crypto-related offenses to encompass a broader spectrum of tech-related crimes, including AI, social media misuse, and hacking.
Although the creation of the CETU may appear contradictory given the SEC’s recent stance on reducing crypto enforcement, the unit's operational focus reflects the evolving landscape of financial crime. By prioritizing AI-related criminal activities, the CETU underscores its dedication to addressing emerging technologies' illicit applications.
As the SEC adapts its enforcement strategies and embraces technological advancements, the CETU's formation represents a proactive step towards safeguarding the digital economy and promoting responsible innovation within the financial sector.