The U.S. Securities and Exchange Commission (SEC) has disbanded its dedicated crypto enforcement task force and has established a smaller cyber unit to manage risks across various tech sectors. This change was publicly disclosed by Acting SEC Chairman Mark Uyeda on February 20, 2025.

The SEC’s newly formed Cyber and Emerging Technologies Unit (CETU) will focus on combating cyber-related misconduct and ensuring retail investors are safeguarded against fraud in emerging technologies.

BREAKING:
🇺🇸 U.S. SEC IS LAUNCHING A CYBER
UNIT TO COMBAT FRAUD IN CRYPTO.
CRIME IS NOT LEGAL !!!
— Ash Crypto (@Ashcryptoreal) (source)
February 20, 2025

Leadership Change

The CETU, under Laura D’Allaird, replaces the original Crypto Assets and Cyber Unit, comprised of around 30 fraud specialists and lawyers from various SEC offices. Previously, the crypto task force was led by Commissioner Hester Peirce, known as “Crypto Mom” for her favorable views on cryptocurrency.

Uyeda remarked, “Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, it will also allow the SEC to deploy enforcement resources judiciously.”

Task Force Reduction

The SEC’s transition from a 50-member crypto enforcement task force to a leaner cyber unit is indicative of a broader policy shift following the Trump administration’s approach. Uyeda highlighted that the revamped unit aims not only to protect investors but also to promote innovation and market growth, indicating a potential shift away from the previous aggressive enforcement tactics pursued under Gary Gensler.

Recent Developments

The SEC is currently reviewing past enforcement actions that targeted significant entities such as Coinbase and Binance, potentially halting litigations not involving fraud allegations. This reflects a new direction in how the agency addresses cryptocurrency-related cases.