The U.S. Securities and Exchange Commission (SEC) has announced that it is disbanding its cryptocurrency fraud unit. The unit will be replaced by a new Cyber Technology Unit (CETU) that will focus on broader cyber threats such as artificial intelligence, social media, the dark web and blockchain.
The new Cyber Emerging Technologies Unit (CETU) will replace the traditional crypto asset unit and replace the cyber unit. The new organization will employ about 30 experts who will focus on cyber fraud, hacking, identity theft and the illegal use of innovative technologies. According to Mark Veda, the acting chairman of the SEC, CETU will not only protect investors but also promote the development of financial markets by cleansing them of fraudsters. Laura Dullard, who previously served as co-head of the Crypto Assets Division, has been appointed as the head of the department. At the same time, the SEC will create a Crypto Task Force to develop a new regulatory strategy for “Crypto 2.0,” or digital assets.
Under former chairman Gary Gensler, the SEC has been aggressively cracking down on cryptocurrency fraudsters, and the new Trump administration plans to ease government pressure on the industry. Donald Trump has repeatedly called for an end to the “government war on cryptocurrencies.” At the same time, cryptocurrency fraud remains a serious problem: the SEC has investigated dozens of schemes for the misuse of digital assets, including money laundering using artificial intelligence and the darknet, and believes that the SEC should change its approach to regulating cryptocurrencies and cybercrime, moving away from cryptocurrency fraud to shift the focus from cryptocurrency fraud to broader threats to the digital economy. While this may make life easier for crypto companies, experts warn of the risk of increasing cyber fraud and blockchain abuse.
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