SEC’s Focus on Cyber and AI to Continue Under Trump Administration

By: Andrew J. Ceresney, Charu A. Chandrasekhar, Luke Dembosky, Avi Gesser, Erez Liebermann, Jeff Robins, Julie M. Riewe, Kristin Snyder & Cameron Sharp (Debevoise & Plimpton)

In this piece, the team at Debevoise & Plimpton’s Data Blog discusses the SEC’s recent steps to bolster its focus on cybersecurity and emerging technologies.

On February 20, 2025, the SEC unveiled the formation of the Cyber and Emerging Technologies Unit (“CETU”), designed to “tackle cyber-related misconduct and safeguard retail investors from bad actors in the emerging tech sector.” In this blog post, we break down the key points of the announcement, which signals the Trump administration’s continued commitment to SEC oversight in cybersecurity and artificial intelligence, particularly regarding fraudulent activities that target retail investors.

An Overview of the CETU and Its Mandate.
The CETU will leverage its team’s deep expertise in fintech and cybersecurity to address misconduct involving securities transactions across seven focus areas:

• Fraud schemes involving emerging technologies like artificial intelligence and machine learning, which we’ve explored here.
• Use of social media platforms, dark web channels, or fake websites to carry out fraudulent schemes.
• Cyber intrusions aimed at stealing material nonpublic information.
• Unauthorized takeovers of retail brokerage accounts, discussed further here.
• Fraudulent activity tied to blockchain technology and crypto assets, covered here.
• Compliance failures by regulated entities regarding cybersecurity regulations, analyzed here, here, and here.
• Misleading disclosures by public companies related to cybersecurity risks, which we’ve examined here.

The CETU succeeds the Division of Enforcement’s Crypto Assets and Cyber Unit, originally established in 2017, and will be staffed by 30 specialized attorneys and fraud experts across the country. Additionally, CETU’s efforts will work in tandem with the SEC’s newly launched Crypto Task Force, led by Commissioner Hester Peirce, aimed at establishing a cohesive and transparent regulatory framework for crypto assets…

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