The U.S. Securities and Exchange Commission (SEC) announced a restructuring of its efforts to combat fraud in emerging technologies. On Thursday, the SEC revealed that it is replacing its former Crypto Assets and Cyber Unit with a smaller team called the Cyber and Emerging Technologies Unit (CETU). The new unit will shift its focus from specifically fighting fraudulent cryptocurrency offerings to tackling a broader range of cyber-related misconduct that affects investors. This includes issues such as fraud in artificial intelligence, social media, the dark web, blockchain technology, hacking, and account takeovers.
The SEC’s decision to replace the Crypto Assets and Cyber Unit comes after the previous unit grew to around 50 employees under the Biden administration. However, the new CETU will operate with a more compact team of about 30 people. This restructuring also reflects a broader policy change, as President Donald Trump previously pushed to end what he termed a “war” on the cryptocurrency industry. The SEC’s move to prioritize combating fraud in emerging technologies rather than focusing solely on digital assets marks a shift in regulatory strategy.
Laura D’Allaird, who was previously appointed as co-leader of the Crypto Assets and Cyber Unit, will now lead CETU. Acting SEC Chairman Mark Uyeda emphasized that the unit’s work will go beyond investor protection and will also aim to foster market efficiency by clearing the way for innovation. The SEC intends for CETU to identify those who exploit emerging technologies for harmful purposes, which could erode investor confidence and hinder the development of new technologies.
Additionally, the SEC’s formation of CETU aligns with the establishment of a Crypto Task Force in January 2025. This group is part of the SEC’s “Crypto 2.0” initiative, designed to create a clearer and more comprehensive regulatory framework for crypto assets. The SEC stated that CETU’s expertise in fintech and cyber-related issues will complement the activities of the Crypto Task Force, which will help develop policies to address misconduct in the cryptocurrency space while promoting growth and innovation.
