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SEC Priorities Regarding Cybersecurity Enforcement in the Second Trump Administration
The SEC recently announced the creation of a Cyber and Emerging Technologies Unit (CETU) that will focus on fraudulent conduct in cybersecurity, digital assets, and emerging technologies such as artificial intelligence. For public companies, the announcement indicates that the new unit will focus on combatting fraud and other “cyber-related misconduct,” including “public issuer fraudulent disclosure […]
Jennifer Lee, Shoba Pillay, and Charles Riely are Partners at Jenner & Block LLP. This post is based on a Jenner & Block memorandum by Ms. Lee, Ms. Pillay, Mr. Riely, H. Kurt von Moltke, Kathryn Chang, and Philip B. Sailer.
The SEC recently announced the creation of a Cyber and Emerging Technologies Unit (CETU) that will focus on fraudulent conduct in cybersecurity, digital assets, and emerging technologies such as artificial intelligence. For public companies, the announcement indicates that the new unit will focus on combatting fraud and other “cyber-related misconduct,” including “public issuer fraudulent disclosure relating to cybersecurity.”
The unit’s announced focus on “fraudulent” cybersecurity disclosures marks a potential shift from the SEC’s recent enforcement approach. This client alert analyzes the SEC’s recent announcement in light of the preexisting cybersecurity enforcement landscape and provides key takeaways for public companies.
