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SEC Overhauls Crypto Enforcement, Deploying New Cyber Unit

SEC Overhauls Crypto Enforcement, Deploying New Cyber Unit

Bitcoin.comBitcoin.com2025/02/21 11:11
By:Bitcoin.com

The U.S. Securities and Exchange Commission (SEC) has announced the establishment of the Cyber and Emerging Technologies Unit (CETU) to combat cyber-related misconduct and protect retail investors in the evolving digital landscape. The new unit, led by Laura D’Allaird, replaces the Crypto Assets and Cyber Unit and consists of approximately 30 fraud specialists and attorneys from multiple SEC offices.

Acting SEC Chairman Mark T. Uyeda highlighted the significance of CETU’s role in strengthening enforcement while allowing innovation to flourish. He stated:

Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously.

He further emphasized CETU’s broader mission: “The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”

CETU will focus on various priority areas, including fraud involving artificial intelligence and machine learning, cyberattacks aimed at obtaining nonpublic information, and scams conducted through social media, the dark web, or fraudulent websites. The unit will also target fraudulent blockchain and crypto asset schemes, unauthorized takeovers of retail brokerage accounts, and compliance failures related to cybersecurity regulations. Additionally, CETU will monitor public issuers for misleading disclosures about cybersecurity risks.

The SEC’s approach to cryptocurrency regulation has shifted since Gary Gensler’s departure, with a more crypto-friendly stance emerging under the leadership of Uyeda. The Acting Chair has taken steps to foster innovation in the crypto industry, including the formation of a dedicated Crypto Task Force led by Commissioner Peirce. The task force recently outlined 10 priorities aimed at providing clearer regulatory guidance and promoting responsible crypto growth. This approach aligns with Trump’s broader vision of establishing the United States as the global leader in cryptocurrency, a stark contrast to the restrictive policies under Gensler’s tenure.

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