The U.S. Securities and Exchange Commission (SEC) has announced a restructuring of its crypto enforcement efforts, renaming and downsizing the unit previously dedicated to digital assets. The move signals a shift in the agency’s approach under Acting Chairman Mark Uyeda, reflecting a broader focus beyond cryptocurrency enforcement. The unit, formerly known as the Crypto Assets and Cyber Unit, will now be called the Cyber and Emerging Technologies Unit, with a revised mandate that expands its oversight to artificial intelligence (AI), cybersecurity, and other emerging technologies.
This transition continues a trend away from the aggressive crypto enforcement stance championed by former SEC Chairman Gary Gensler in 2022. At its peak, the unit nearly doubled in size under Gensler’s leadership, growing to 50 members. The newly formed unit will be composed of approximately 30 fraud specialists and attorneys across multiple SEC offices. Uyeda, appointed as acting chairman while awaiting Senate confirmation of Paul Atkins as the permanent SEC head, emphasized that the new unit would not only target fraudulent activity but also foster innovation by ensuring a balanced regulatory approach.
In a statement, Uyeda said, “The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow,” contrasting sharply with Gensler’s previous rhetoric that focused heavily on policing crypto markets. The reorganization is taking place alongside the SEC’s Crypto Task Force, an initiative led by Hester Peirce, a Republican commissioner known for her pro-crypto stance.
The task force is expected to complement the work of the new enforcement unit while recalibrating the SEC’s regulatory posture toward digital assets. While the agency will continue to investigate fraud involving cryptocurrencies and blockchain technology, its expanded focus will include policing illicit uses of AI, cyber threats, and fraudulent activities exploiting new technologies. Laura D’Allaird has been appointed to lead the restructured enforcement unit. D’Allaird previously worked on the SEC’s high-profile case against Kik Interactive, which faced regulatory action for allegedly offering unregistered securities through its Kin digital token.
The appointment underscores the agency’s continued scrutiny of digital assets, albeit under a different regulatory philosophy. The SEC’s enforcement shift follows the broader policy changes introduced under President Donald Trump, whose administration has taken a more lenient stance on cryptocurrency regulation. The Biden-era SEC, led by Gensler, had pursued a strict approach, arguing that most digital assets fell under federal securities laws. The current leadership, however, appears intent on reducing regulatory friction while maintaining safeguards against fraud.
The agency secured $4.5 billion in penalties from a single case against Terraform Labs and its founder, crypto mogul Do Kwon, highlighting the scale of financial misconduct in the sector. While the SEC’s new structure may signal a lighter touch on crypto oversight, the agency maintains that it will continue to act against fraudulent practices that undermine investor confidence. With these changes, the SEC appears to be recalibrating its role in the digital asset space, shifting from strict enforcement to a more balanced oversight model that supports both regulatory compliance and technological innovation. – By CryptoWire News Desk.