SEC Replaces Gary Gensler’s Crypto Unit with New Cyber and Emerging Technologies Team to Combat AI Fraud

SEC Shifts Focus with New Cyber and Emerging Technologies Unit

The US Securities and Exchange Commission (SEC) has announced the formation of a new unit, the Cyber and Emerging Technologies Unit (CETU), signalling a shift in its approach to tackling cyber-related misconduct.

This restructuring comes as the SEC continues to adjust its stance on cryptocurrency regulation under the leadership of Acting Chair Mark Uyeda.

CETU to Combat AI-Related Crime, Crypto Less Prioritised

The primary goal of CETU is to address fraudulent activities involving emerging technologies, including artificial intelligence, blockchain, and social media.

Unlike its predecessor, the Crypto Assets and Cyber Unit, which was largely focused on crypto-related fraud, CETU will direct its efforts towards broader cyber crimes, such as hacking and account takeovers.

Although the unit will still handle issues related to Web3 technologies, its focus on crypto crimes will not be its central concern.

Speaking about the role of the new unit, Acting Chair Uyeda explained,

"This new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies."

Smaller Team, Broader Focus: A New Direction for Enforcement

CETU will be led by Laura D’Allaird, who takes on the role of head of the unit, alongside a team of around 30 legal and fraud experts.

This is a significant reduction in staffing compared to the Crypto Assets and Cyber Unit, which had grown to about 50 members during Gary Gensler’s tenure.

While the previous unit concentrated on crypto-related crimes, the new team’s mandate is to address a wider range of cyber misconduct across various technologies.

Shift in SEC’s Enforcement Strategy Under New Leadership

The changes mark a clear departure from the SEC's previous focus under Gary Gensler, who was known for his tough stance on digital asset regulation.

During his time as SEC Chairman, the Commission regularly highlighted its enforcement actions against fraudulent crypto offerings.

However, under the current leadership, the SEC appears to be scaling back its crypto enforcement efforts, a reflection of President Trump’s past remarks about curbing the federal government's stance on the cryptocurrency sector.

Hester Peirce, who has advocated for less aggressive regulatory actions, further explained the SEC's evolving position, stating that the agency is looking to delegate some responsibility and limit its outreach in certain sectors.

While enforcement against crypto crimes will not be abandoned, it will not dominate the SEC’s priorities.

Crypto Task Force Remains a Key Component of the SEC’s Approach

Although CETU's primary focus is not crypto crime, it will work in tandem with the SEC’s Crypto Task Force.

Formed earlier in 2025, the Crypto Task Force is part of the SEC’s ongoing efforts to develop a clearer regulatory framework for the cryptocurrency industry.

It is part of what the agency is calling “Crypto 2.0,” a new initiative aimed at refining how digital assets are regulated and ensuring that the industry operates with greater clarity and accountability.