Another Cryptocurrency-Friendly Decision from the New SEC – Erasing the Traces of the Old One by One

The U.S. Securities and Exchange Commission (SEC) is overhauling its approach to cryptocurrency oversight, replacing its dedicated cryptocurrency enforcement team with a smaller unit focused on broader cyber-related fraud.

The move represents a shift in the regulator’s stance towards digital assets, in line with a more innovation-friendly approach.

The newly established unit will address a wide range of cyber fraud activities, including those that leverage social media platforms, artificial intelligence, machine learning and blockchain technologies, the agency said in a statement on Thursday.

Laura D'Allaird, who previously served as co-chair of the SEC's crypto unit, will lead the new cyber-focused team, which will consist of approximately 30 fraud experts and attorneys across various SEC offices.

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“The unit will not only protect investors, but also facilitate capital formation and market efficiency by paving the way for the growth of innovation,” SEC Acting Chairman Mark Uyeda said in a statement. “It will root out those who seek to misuse innovation to harm investors and reduce confidence in new technologies.”

The restructuring results in a reduction of about 20 staff from the original enforcement unit, which was established in 2022 to investigate fraud and financial cybercrime in cryptocurrency markets. Under the leadership of former SEC Chairman Gary Gensler, the agency pursued about 100 crypto-related enforcement actions and often clashed with industry advocates.

“I’ve never seen a field so tied to emotion and so uninterested in fundamental issues,” Gensler told Bloomberg TV in an interview in January.

*This is not investment advice.

Continue Reading: Another Cryptocurrency-Friendly Decision from the New SEC – Erasing the Traces of the Old One by One