SEC Announces Cyber and Emerging Technologies Unit (CETU)
SEC RELEASES
Introduction
With Cybersecurity and Artificial Intelligence as top priorities for the SEC in 2025, the SEC announced February 20th, 2025, the creation of the Cyber and Emerging Technologies Unit (CETU).
The focus of this unit will be “combatting cyber-related misconduct and to protect retail investors from bad actors in the emerging technology space”.
The CETU’S Priorities
The new task force will work along side the Crypto Task Force led by Commissioner Hester Peirce, appointed by President Trump during his first term. Approximately thirty (30) Attorneys and Fraud Specialists will be involved.
Acting SEC Chairman, Mark Uyeda, made a statement that the CETU will “protect investors…[and] root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies”.
Among the priorities listed for the taskforce, RIAs and BDs should particularly pay attention to:
- Fraud committed using emerging technologies
- Regulated entities’ compliance with cybersecurity rules and regulations, and
- Public issuer fraudulent disclosure relating to cybersecurity.
Vigilant’s Conclusion
This most recent activity supports Vigilant’s prediction that drastic reductions in SEC actions are unlikely when comparing SEC enforcements under President Trump’s first term vs that of President Biden.
Firms that have made significant efforts to create a proactive culture of compliance during the last presidency should continue these efforts as the industry attempts to keep up with the exponential increases in AI and cybersecurity threats.