The United States Securities and Exchange Commission (SEC) has replaced its Crypto Assets and Cyber Unit with the newly formed Cyber and Emerging Technologies Unit (CETU), continuing its shift in approach to regulating digital assets and combating cyber-enabled financial crimes.
Announced on Feb. 20, the unit will focus on addressing misconduct involving artificial intelligence, blockchain fraud, social media manipulation, and cybersecurity compliance failures.
Leadership and Operational Framework
Laura D’Allaird, formerly deputy director of the SEC’s Division of Enforcement, will lead the CETU as its inaugural chief. The unit comprises 30 attorneys and fraud specialists across nine SEC regional offices, consolidating expertise in fintech, cybersecurity, and digital asset markets.
Acting SEC Chair Mark Uyeda emphasized that the CETU will collaborate with Commissioner Hester Peirce’s Crypto Task Force to “deploy enforcement resources judiciously” while fostering innovation. Uyeda continued,
“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.”
The CETU’s mandate prioritizes six areas: AI-driven fraud schemes, the dark web and social media manipulation, hacking of material nonpublic information, brokerage account takeovers, crypto asset-related fraud, and cybersecurity rule compliance.
This structure reflects lessons from high-profile enforcement actions under former Chair Gary Gensler, whose aggressive litigation strategy against firms like Coinbase and Ripple drew criticism for creating regulatory uncertainty.
From adversarial enforcement to framework building
The CETU’s creation coincides with broader SEC reforms initiated under the Trump administration. Since January, the Commission has rescinded restrictive accounting guidelines (SAB 121), clarified crypto asset classification rules, and approved new spot crypto ETFs. These changes follow President Trump’s Jan. 23 executive order mandating interagency coordination through the Presidential Working Group on Digital Asset Markets.
These changes align with the Trump administration’s priorities to position the U.S. as a blockchain innovation leader while countering foreign CBDC development through private stablecoin promotion.
The CETU hopefully represents the SEC’s effort to address evolving technological risks without stifling financial innovation.
By combining cyber expertise with refined regulatory parameters, the Commission aims to mitigate threats like AI-powered market manipulation while enabling institutional participation in digital asset markets. This dual focus on security and growth reflects Washington’s recognition of blockchain technology’s irreversible integration into global finance.
Notably, the CETU does not appear to have a mandate to crack down on perceived securities fraud by crypto projects. Instead, it focuses on “Fraud involving blockchain technology and crypto assets,” a subtle but potentially important distinction.
It could be interpreted that fraud is a focus where blockchain and digital assets are used as a transaction medium rather than defining almost all digital assets as an unregistered security, per Gensler.
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