SEC Replaces Crypto Enforcement Team With Smaller Cyber Unit as Part of New Pivot

Key Takeaways

• The SEC has replaced its crypto enforcement task force with a smaller cyber unit.
• The new division will focus on broader emerging technologies, not just crypto.
• The move signals a shift in the agency’s approach under the Trump administration.

The U.S. Securities and Exchange Commission (SEC) has scrapped its dedicated crypto enforcement task force and replaced it with a smaller unit focused on broader emerging technologies.

The new cyber division will monitor risks across multiple sectors, including blockchain, artificial intelligence, machine learning, and social media platforms—marking a departure from the agency’s aggressive crypto crackdown under former Chairman Gary Gensler.

The move comes as part of a broader policy shift under the Trump administration, signaling a potential easing of regulatory pressure on the digital asset industry.

SEC’s New Cyber Unit To Oversee Emerging Technologies

Rather than singling out crypto, the SEC’s revamped enforcement unit will oversee a range of emerging technology-related financial crimes. The agency has reduced the task force’s size from 50 members to around 30 fraud experts and lawyers drawn from multiple SEC offices.

Acting SEC Chairman Mark Uyeda emphasized that the goal is not just investor protection but also fostering innovation and market growth.

“It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies,” Uyeda added.

The new cyber task force will be led by Laura D’Allaird, who previously worked in the SEC’s Division of Enforcement.

SEC’s Softened Crypto Approach Under Trump Administration

Uyeda, appointed as interim SEC chief under the Trump administration, has taken several steps toward a more industry-friendly regulatory stance.

The downsizing of the crypto task force follows other recent moves, including dropping a high-profile appeal related to broker-dealer regulations that had threatened decentralized finance (DeFi) projects.

While the SEC will continue to monitor crypto-related fraud, its enforcement actions will no longer disproportionately target the sector.

The crypto community largely welcomed the restructuring, viewing it as a step toward a more balanced regulatory framework. Some industry leaders believe it could pave the way for clearer, more constructive crypto policies after years of regulatory uncertainty.

As regulatory oversight evolves under the new administration, the industry will be watching closely to see how the SEC’s priorities continue to shift in the coming months.