The U.S. Securities and Exchange Commission has unveiled a new unit dedicated to protecting investors from illicit activity tied to cryptocurrency, artificial intelligence, and other emerging digital technologies.
Dubbed the Cyber and Emerging Technologies Unit, CETU replaces the former Crypto Assets and Cyber Unit as the agency’s primary digital asset anti-fraud team.
CETU will operate with a team of 30 fraud specialists and SEC attorneys from across the agency, according to a press release published on Feb. 20. Laura D’Allaird will lead the unit and work closely with the SEC’s Crypto Task Force, headed by commissioner Hester Peirce.
D’Allaird previously co-chaired the SEC’s Crypto Assets and Cyber Unit alongside Mark Sylvester. It remains unclear whether Sylvester will have a role in the new division or if the agency plans to include him at all.
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.
Mark Uyeda, acting SEC chair
Replacing the agency’s previous crypto misconduct unit marks another structural shift at the SEC. Since President Donald Trump’s return, the commission has increasingly adopted a more crypto-friendly stance. Former SEC chair Gary Gensler, a known crypto skeptic, resigned, and pro-crypto commissioner Mark Uyeda assumed his duties.
During Uyeda’s tenure, the agency created a Crypto Task Force, engaged digital asset industry players like Jito Labs over Ethereum staking, and reassigned its top crypto prosecutor, Jorge Tenreiro.
Moreover, the SEC has halted enforcement action against Binance and Coinbase. Gensler’s administration sued both exchanges in 2023, alleging unregistered securities offerings and federal violations. Under Trump’s administration, the SEC also plans to scale back crypto enforcement actions and provide clearer regulatory guidelines for the digital asset industry.
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