Just In: SEC Launches New Unit to Tackle Fraud in AI, Blockchain, and Crypto

The U.S. Securities and Exchange Commission (SEC) is stepping up its game in the fight against cryptocurrency fraud. With scams, hacks, and cyber threats on the rise, the agency has launched a new cyber unit to crack down on bad actors while keeping digital markets safe. Called the Cyber and Emerging Technologies Unit (CETU), this team will focus on fraud linked to crypto, AI, and other cutting-edge technologies.

But here’s where things get interesting – unlike past SEC crackdowns, this unit isn’t about labeling crypto as securities. Instead, it’s targeting fraud tied to blockchain and digital assets.

A Stronger Team to Fight Fraud

The CETU, led by Laura D’Allaird, replaces the former Crypto Assets and Cyber Unit. It consists of around 30 fraud specialists and attorneys from different SEC offices.

“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously,” stated Acting Chairman Mark T. Uyeda.

What Will CETU Focus On?

The SEC’s new unit is designed to protect investors while allowing innovation to grow. It will focus on fraud involving emerging technologies such as:

• AI and machine learning scams
• Fraudulent activity on social media and the dark web
• Hacking and theft of private information
• Retail brokerage account takeovers
• Crypto and blockchain-related fraud
• Cybersecurity failures by regulated firms
• Misleading cybersecurity reports from public companies

By tackling these threats, the SEC aims to create a safer market without slowing down technological advancements.

A Shift in the SEC’s Crypto Approach?

Uyeda noted that CETU will work alongside Commissioner Hester Peirce’s Crypto Task Force, which focuses on clarifying which tokens should not be considered securities.

Unlike previous SEC crackdowns, CETU seems less focused on treating most crypto projects as securities violations. Instead, it is targeting fraud involving blockchain technology and digital assets. This is a key shift from SEC Chair Gary Gensler’s aggressive enforcement approach.

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How Trump’s Presidency Is Shaping Crypto Policy

In recent years, the SEC’s regulation-by-enforcement strategy slowed the crypto industry’s growth. But in 2025, with pro-crypto President Donald Trump in office, the SEC has started taking a more balanced approach.

Since January, the SEC has:

• Removed restrictive accounting rules (SAB 121)
• Clarified how crypto assets should be classified
• Approved new spot crypto ETFs

These changes align with Trump’s January 23 executive order, which pushes for better coordination among government agencies to support digital asset markets.

With CETU’s launch and Peirce’s Crypto Task Force, the SEC appears to be moving towards a fairer regulatory approach that encourages growth while preventing fraud.