The Securities and Exchange Commission (SEC) has announced the creation of a new unit called the Cybersecurity Unit and Emerging Technologies (CETU), designed to protect investors and promote innovation in the field of cryptocurrencies and artificial intelligence. This new division replaces the Cryptoactive and Cybersecurity Unit created in 2022 and will be led by Laura d’Allard, who has previous experience in the regulation of crypto assets.
The CETU will focus on fraud related to AI, automatic learning, and Blockchain. In an official announcement, the US stock and securities commission stated that the new division arises in response to the rapid evolution of the global technological landscape, with a focus on cryptocurrency, artificial intelligence (AI), and automatic learning. According to the SEC, the CETU will replace the previous Cryptoactive and Cybersecurity Unit, established in 2022, and reflects the body’s commitment to maintaining the integrity of financial markets against emerging threats derived from the misuse of technology.
Leadership and Objectives
Laura d’Allard, an experienced official of the SEC, has been appointed director of CETU. With years of experience in different compliance roles, d’Allard was previously co-chief of the former cryptoactive unit and advisor to the ex-commissioned Democrat Jaime Lizárraga. According to the interim president of the SEC, Mark Uyeda, “the unit will not only protect investors but will also facilitate capital formation and market efficiency, clearing the way for innovation to grow.” The statement also underlines the objective of eradicating fraudulent practices that seek to undermine confidence in new technologies.
A More Flexible Approach to Cryptocurrencies
From the beginning of the Donald Trump administration, the SEC has adopted a more flexible approach in relation to cryptocurrencies. Republican commissioner Hester Peirce, known for her pro-innovation positions, will lead the new working group focused on the crypto sector, which will work together with CETU. Peirce has recently suggested that some tokens could be classified as “non-securities,” opening the door to less strict regulation. This would mark a significant change regarding the position of the former president of the SEC, Gary Gensler, who argued that many cryptocurrencies should be considered securities.
Priorities of CETU: Artificial Intelligence and Blockchain
The CETU will focus on three key areas: detecting fraud associated with the use of AI and automatic learning, investigating fraudulent schemes related to Blockchain and crypto assets, and collaborating with other agencies to establish a coherent and updated regulatory framework. The ultimate goal is to balance the protection of investors with the promotion of technological innovation. In this sense, CETU seeks not only to sanction bad practices but also to provide guidance to companies that develop legitimate solutions in these areas.
Implications for the Future of the Financial Market
The creation of CETU could have a significant impact on the crypto ecosystem, especially in the way in which exchanges and new token projects are regulated. As the market evolves, clear regulations could attract institutional investors who seek greater stability and transparency. At the same time, the more flexible approach of the current administration could be well received by cryptocurrency enthusiasts and technological startups that seek to avoid excessive regulatory restrictions.
It’s worth noting that the SEC is already showing indications of wanting to follow a different path under the new administration. For example, the agency proposed a pause in its dispute in court against Binance and recently withdrew its appeal in the case against the Blockchain Association. As the financial landscape continues to evolve, the creation of CETU is a significant step towards protecting investors and promoting innovation in the field of cryptocurrencies and artificial intelligence.