Under the Trump administration, the regulatory authority is adopting a new approach to the digital asset sector.
On February 20, the Securities and Exchange Commission announced the launch of a new unit dedicated to combating crypto-related crimes. The new Cyber and Emerging Technologies Unit will replace the existing Crypto Assets and Cyber Unit and will work alongside the SEC’s crypto task force to “identify those who seek to misuse innovation to harm investors and undermine trust in new technologies.”
The unit, led by SEC attorney Laura D’Allaird, will consist of approximately 30 fraud and legal specialists from various regulatory departments. D’Allaird has prior experience in the sector, having participated in the 2020 SEC case against Kik Interactive, which was accused of violating the federal Securities Act by offering its Kin digital tokens.
This shift marks a turning point in the SEC’s stance on the industry. Under the Biden administration, former SEC Chair Gary Gensler took a stricter approach, arguing that most digital assets should be classified as securities. With Donald Trump’s election, the regulatory body is now moving towards a different strategy.
Acting SEC Chair Mark T. Uyeda stated that the new unit “will not only protect investors but also facilitate capital formation and market efficiency, paving the way for innovation growth.”
The unit will focus on several key areas:
- Fraud involving blockchain, cryptocurrencies, and artificial intelligence;
- Cracking down on hackers attempting to access non-public insider information;
- Identifying criminals using social media, the dark web, or fake websites to scam retail investors.
Last year, the SEC filed 33 enforcement actions against companies and individuals for crypto-related fraud. Commissioner Hester Peirce, head of the SEC’s crypto task force, emphasized the agency’s commitment to bringing order to the “chaos” left by the previous administration.
