U.S. SEC Restructures Enforcement Unit for Broader Cyber-Related Fraud Combat
The U.S. Securities and Exchange Commission (SEC) has replaced its cryptocurrency misconduct enforcement unit with a more comprehensive team focused on combating all forms of cyber-related fraud.
The new unit, led by former crypto unit co-chief Laura D'Allaird, will allocate a smaller team compared to its predecessor, with a broader mandate to investigate fraud involving social media platforms, artificial intelligence, machine learning, and blockchain technologies.
"The unit will not only protect investors but also facilitate capital formation and market efficiency by clearing the way for innovation to grow," said SEC Acting Chairman Mark Uyeda. "It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies."
The move reflects a shift in the SEC's approach to cryptocurrencies, after former Chairman Gary Gensler's tough stance on the industry, which involved numerous enforcement actions and skepticism about the value of certain coins.
"I've never seen a field that's so much wrapped up in sentiment and not so much about fundamentals," Gensler said previously.
The new unit's focus on broader cyber-related fraud is part of the SEC's ongoing efforts to protect investors and maintain market integrity in the rapidly evolving digital landscape.