SEC Creates Cyber and Emerging Technologies Unit

The SEC has announced that it has created a Cyber and Emerging Technologies Unit (CETU) whose focus is to combat “cyber-related misconduct and . . . protect retail investors from bad actors in the emerging technologies space.” The CETU, which is a replacement of the Crypto Assets and Cyber Unit, consists of a number of attorneys and fraud specialists from various SEC offices.

The CETU’s priorities will include, among other things, misconduct related to emerging technologies (e.g., AI), social media use, hacking, crypto assets and blockchain technology, false or misleading cybersecurity disclosures, and lack of compliance with cybersecurity regulations.