On February 20, the Securities and Exchange Commission (SEC) established the Cyber and Emerging Technologies Unit.
Formally, the unit is dedicated to “combatting cyber-related misconduct and to protect retail investors from bad actors in the emerging technologies space.” It is a repeat of the first Trump administration’s emphasis on fraud and the protection of retail investors, rather than the aggressive enforcement-first approach that former President Joe Biden took with criminal cryptocurrency companies, which prioritized the rights of consumers.
This unit replaces the Crypto Assets and Cyber Unit. It is part of a shift away from non-fraud enforcement actions against delinquent crypto companies. In effect, this gives crypto companies more leeway to get away with less overt forms of financial crime, as evidenced by the SEC dropping cases against Binance, Coinbase, and others.
