US SEC Launches New Unit to Tackle Cyber and Crypto-Related Misconduct

The U.S. Securities and Exchange Commission (SEC) has announced the creation of the Cyber and Emerging Technologies Unit (CETU) to combat fraud related to cyber and emerging technologies. The new unit replaces the Crypto Assets and Cyber Unit and will focus on protecting retail investors from cyber-related misconduct.

Laura D’Allaird has been appointed as the chief of the CETU, which consists of around 30 fraud specialists and attorneys from multiple SEC offices. The unit will work alongside the Crypto Task Force, led by Commissioner Hester Peirce, to ensure enforcement efforts are effectively managed.

US SEC New Unit to Tackle Cyber, Crypto-Related Misconduct

The SEC stated in an X post that the CETU will target various forms of fraud involving cyber and emerging technologies.

The unit will focus on misconduct related to securities transactions, including the misuse of artificial intelligence, fraudulent social media schemes, and hacking to obtain nonpublic information. It will also address fraud involving blockchain technology and crypto assets.

Acting SEC Chairman Mark Uyeda emphasized that the new unit aims to safeguard investors while allowing innovation to thrive.

“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow,” Uyeda said.

SEC Strengthens Cybersecurity Oversight for Regulated Entities

In addition to tackling fraud, the CETU will also ensure compliance with cybersecurity regulations among regulated entities. The unit will oversee how financial firms and public issuers handle cybersecurity risks and disclosures.

This includes ensuring that brokerage firms and investment advisers follow SEC rules to protect investors from cyber threats.

The SEC has increased its focus on cybersecurity in recent years due to rising threats against financial institutions. Cases involving retail brokerage account takeovers and hacking incidents have prompted the agency to implement stricter oversight measures. The CETU will play a key role in enforcing these regulations.

Changes in SEC’s Crypto Oversight Under New Leadership

The launch of the CETU comes amid shifts in the SEC’s approach to cryptocurrency regulation. Under the Biden administration, the SEC took a strict enforcement stance against crypto firms. However, in 2025, the arrival of President Donald Trump brought changes to the agency’s policy.

The new administration has focused on a balanced regulatory framework that protects investors while fostering industry growth. Moreover, the US SEC recently withdrew its appeal in a lawsuit challenging its dealer rule expansion. The case was filed by the Blockchain Association and the Crypto Freedom Alliance of Texas in 2024.

Amid these pauses, legal experts have noted that the SEC has prioritized cases with imminent deadlines, which may explain why the Ripple case has not seen a request for a pause.

Meanwhile, the SEC also filed a request for an extension in its case against Coinbase. The agency is seeking more time to respond to Coinbase’s request for an interlocutory appeal. These legal battles remain key developments in the SEC’s regulatory approach to digital assets.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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