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The federal government of the United States has a separate agency called the Securities and Exchange Commission (SEC). Its main objective is to maintain regulations against market manipulation.
Today, the SEC confirmed the establishment of the Cyber and Emerging Technologies Unit (CETU) to combat cyber-related misbehaviour and secure retail investors from fraudulent operators in the future technology arena.
SEC Introduces Emerging Technologies
The Crypto Assets and Cyber Unit is replaced by the CETU, which is headed by Laura D'Allaird and consists of about 30 fraud experts and lawyers from several SEC locations. Mark T. Uyeda, the acting chairman of the SEC, pointed out the importance of CETU's role in improving regulation while promoting innovation.
He said:
“The Crypto Task Force, headed by Commissioner Hester Peirce, will benefit from the efforts of this new section under Laura's direction. Most importantly, the new entity will also enable the SEC to use enforcement resources efficiently.”
He also underlined CETU's ultimate goal:
“By opening the ground for innovation for growth, the unit would not only secure investors but also promote capital formation and market efficiency. It will eliminate those who try to take advantage of innovation in order to hurt investors and destroy trust in modern technology.”
Areas of Focus
The CETU will primarily use the staff's extensive competence in fintech and cyber to fight securities transaction crimes in these areas of focus:
- Fraud using cutting-edge technologies like machine learning and artificial intelligence
- Using fake websites, the dark web, or social media to commit fraud
- Hacking to acquire important private data
- Account purchases at retail brokers
- Fraud involving cryptocurrency and blockchain technology
- Participation of regulated organizations with cybersecurity laws and guidelines
- Fraudulent statements by public issuers on cybersecurity
Strategies to Promote Innovation
Since Gary Gensler left, the SEC has taken a different approach to regulating cryptocurrencies, with Uyeda taking the lead in this change. The Acting Chair has also established a specialized Crypto Task Force headed by Commissioner Peirce to promote innovation in the crypto sector.
The task force just released a list of ten targets meant to promote safe crypto growth and offer more precise regulatory guidance. This strategy differs sharply from Gensler's limiting restrictions and is in line with Trump's larger goal of making the US the world leader in cryptocurrency.
