The Securities and Exchange Commission (SEC) has announced a significant change to its regulatory strategy. The agency is renaming its Crypto Assets and Cyber Unit to the “Cyber and Emerging Technologies Unit.” The SEC stated that the newly rebranded unit will focus on combating cyber-related misconduct and protecting investors from risks associated with emerging technologies.
The unit, comprised of approximately 30 fraud specialists and attorneys, will be led by Laura D’Allaird. D’Allaird was appointed co-chief of the previous unit in December and brings extensive experience within the SEC, including roles as senior counsel and counsel to a commissioner. The unit’s focus will include fraud utilizing emerging technologies, such as social media or the dark web, hacking to obtain nonpublic information, theft of retail brokerage accounts, and fraud involving cryptocurrency and blockchain.
Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce.
Acting Chairman Mark Uyeda expressed optimism about the unit’s revamped mission, emphasizing its role in facilitating capital formation and market efficiency. He stated that the unit will work to protect investors and “clear the way for innovation to grow.” The shift in terminology and focus reflects a transition from the Biden administration’s original intent.
This marks a departure from the approach under the Biden administration, which launched the Crypto Assets and Cyber Unit in 2022 with the stated goal of protecting investors in the cryptocurrency markets. Between 2021 and 2024, the SEC took legal action against 89 entities involved in cryptocurrency fraud, including actions against Sam Bankman-Fried of FTX and a lawsuit against Binance.
This change has sparked debate among former agency officials. John Stark Reed, former chief of the SEC’s Office of Internet Enforcement, stated his belief that the SEC’s main focus for crypto enforcement has come to an end, expressing his feelings on LinkedIn. His statement was a reference to the fact that the new unit’s focus seemed to mirror the responsibilities of the SEC’s Office of Internet Enforcement, which was created about 27 years ago. Concerns have also been amplified due to some of those associated with President Trump. Paul Atkins, Trump’s nominee for SEC chair, and Andrew Vollmer, former deputy general counsel, co-authored a chapter in Project 2025 criticizing the SEC and the Commodity Futures Trading Commission.
Despite the changes, the SEC has stated that the unit will continue to address fraud involving crypto assets and related blockchain technology. Michael Daniel, former White House cyber coordinator under the Obama administration, suggested that the name change could allow the unit to distance itself from the Biden administration without a major shift in focus.
Daniel noted that expanding the unit’s focus to cover technologies like artificial intelligence and quantum computing is a logical step in protecting investors. These changes suggest a renewed focus on adapting to advancements in technology.
