SEC Restructures Cryptocurrency Division

The SEC has established a Cybersecurity and Emerging Technologies Unit (CETU) to combat cybercrime and protect retail investors from fraud in the realm of new technologies.

This new structure replaces the division for crypto assets and cybersecurity. It is headed by Laura D’Allaird and comprises approximately 30 specialists.

“Under Laura’s leadership, this new unit will complement the work of the Crypto Assets Task Force led by Commissioner Hester Peirce. Importantly, the reorganization will also allow the SEC to prudently utilize enforcement resources,” stated Acting Chairman Mark Uyeda.

According to the statement, CETU will tackle misconduct related to securities in several priority areas:

• fraud involving new technologies such as AI, blockchain, and crypto assets;
• use of social media, the dark web, or fake websites to perpetrate scams;
• hacks aimed at obtaining significant non-public information;
• takeovers of retail brokerage accounts;
• compliance by regulated entities with security rules and norms, as well as disclosure of relevant information.

“The unit will root out those who seek to exploit innovation, harming investors and diminishing trust in new technologies,” Uyeda emphasized.

Back in February, the SEC abandoned the promotion of the “dealer rule” for participants in the crypto industry.

The Commission also agreed to pause its legal proceedings with Binance for 60 days.