SEC forms crypto crime-fighting unit to protect investors, foster innovation

The Securities and Exchange Commission announced the formation of a new unit aimed at combatting crimes involving cryptocurrency, according to the agency.

The Cyber and Emerging Technologies Unit (CETU) will be led by Laura D’Allaird and will replace the Crypto Assets and Cyber Unit. CETU has about 30 fraud specialists and attorneys across multiple SEC offices.

“It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies,” Acting SEC Chairman Mark T. Uyeda said in a statement Thursday.

The CETU will work with the newly formed Crypto Task Force led by SEC Commissioner Hester Peirce, known as “CryptoMom” by crypto enthusiasts, according to The Wall Street Journal.

The crypto task force will focus on digital asset regulation, according to a report on Decrypt.

This is a sea change for the agency. During the Biden administration, the SEC’s former chairman, Gary Gensler, cracked down on crypto, repeatedly saying that most digital assets fell under the definition of securities and thus should come under the stricter securities regulations designed to protect individual investors.

Gensler’s actions came after the collapse of criminally mismanaged crypto brand FTX in November 2022, according to Decrypt. After FTX’s failure, the former chairman “had the perfect reason to crack down on an industry full of ‘hucksters, fraudsters and scam artists’ — to quote SEC chair Gary Gensler,” the publication reported.

After Republican President Donald Trump — a far more crypto-friendly candidate — was elected in November, the SEC signaled it would take a different approach to overseeing the industry, Decrypt reported.

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

D’Allaird is a lawyer who previously served as co-chief of the Crypto Assets and Cyber Unit, according to her LinkedIn profile.

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