On February 20, 2025, the Securities and Exchange Commission (“SEC”) announced the creation of the Cyber and Emerging Technologies Unit (“CETU”). The new unit, led by Laura D’Allaird, has been tasked with combatting fraud related to cyber and emerging technologies, with a particular focus on protecting retail investors from cyber-related misconduct involving artificial intelligence, hacking, and the dark web. 

Notably, the CETU replaces the SEC’s Crypto Assets and Cyber Unit – an action which aligns with recent changes in the SEC’s stance on cryptocurrency regulation.  In keeping with President Trump’s promise to make the U.S. “the crypto capital of the planet” and ending the more crypto-hostile stance taken previously, the SEC has already begun paring down enforcement actions against digital asset companies and whittling away at non-crypto-friendly regulations.  Replacing its enforcement unit devoted to misconduct in the cryptocurrency markets is just the latest sign of the SEC’s more friendly approach to digital assets. 

Though the CETU will still investigate fraud in the cryptocurrency markets, Acting Chairman Mark Uyeda emphasized that the new unit will allow the SEC to “deploy enforcement resources judiciously,” “not only protect investors but [] also facilitate capital formation and market efficiency by clearing the way for innovation to grow,” and “root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”  As the SEC navigates this new shift in policy, the CETUs efforts will likely play a crucial role in balancing enforcement with innovation and ensuring that technological advancements are cultivated.