Latest news with #CETU
Reuters
13-06-2025
- Business
- Reuters
SEC Regulation of Crypto and Digital Assets Under Trump 2.0 Practical Law The Journal
For the first time, crypto and digital assets played a meaningful role in a US election. The crypto community favored President Trump in the 2024 election because he promised crypto-friendly reforms throughout the campaign. As anticipated, the second Trump administration has acted swiftly and voluminously in addressing regulatory pain points for the crypto markets as part of a broader deregulatory initiative, as well as enacting other noteworthy pro-crypto measures. Because SEC commissioners serve at the discretion of the president, the agency's policies generally reflect the priorities of the current administration. Under Trump 2.0, the SEC has wasted no time in implementing the administration's game plan. This article highlights significant SEC crypto-related actions under the second Trump administration, including: Formation of the SEC crypto task force. Replacement of the SEC's crypto enforcement unit with the newly formed Cyber and Emerging Technologies Unit (CETU). Termination or delay of notable crypto enforcement matters. Rescission of Staff Accounting Bulletin 121 (SAB 121) on crypto custody accounting. Withdrawal of a 2019 statement and issuance of frequently asked questions (FAQs) on broker-dealer custody of digital assets. Withdrawal of an appeal of a district court ruling vacating expanded SEC definitions of the terms 'dealer' and 'government securities dealer' which captured crypto. Statements by the Division of Corporation Finance on: stablecoins; meme coins; and crypto mining activities. (For the complete version of this resource, which includes information on a variety of Trump administration crypto-related initiatives, including an executive order creating a presidential crypto working group and prudential bank crypto regulatory reforms, see Regulation of Crypto and Digital Assets Under Second Trump Administration: Overview on Practical Law.) Crypto Task Force On January 21, 2025, then-Acting SEC Chair Mark Uyeda announced the launch of an SEC crypto task force, headed by Commissioner Hester Peirce, dedicated to developing a comprehensive and clear regulatory framework for crypto assets in the US. The announcement marked a dramatic change in the SEC's approach to crypto regulation, which has in recent years relied on regulation by enforcement. The agency took a notoriously aggressive approach to crypto enforcement under prior SEC Chair Gary Gensler, placing the agency at odds with the crypto industry and certain proponents of fintech innovation (for more information, see Regulation of Crypto-Asset Securities in USA on Practical Law). These critics have often included Commissioners Uyeda and Peirce, who now find themselves in position to guide SEC crypto policy.
Yahoo
21-02-2025
- Business
- Yahoo
SEC Forms New Cyber and Emerging Technologies Unit To Tackle Crypto Fraud and Cybercrime
On Feb. 20, 2025, the U.S. Securities and Exchange Commission (SEC) announced the creation of the Cyber and Emerging Technologies Unit (CETU) to combat cybercrime and fraud in the blockchain and cryptocurrency sectors. This new unit will replace the SEC's former Crypto Assets and Cyber Unit and will focus on protecting retail investors from fraud and misconduct in the emerging technology space. The CETU will be made up of about 30 fraud specialists and attorneys from various SEC offices. Laura D'Allaird, the attorney who previously led the Crypto Assets and Cyber Unit, will head the new group. Under her leadership, the SEC successfully handled cases such as the one against Kik Interactive for violating federal securities laws. The new unit's scope will include tackling fraud in blockchain technology, cryptocurrency, artificial intelligence, and other emerging tech sectors. Acting SEC Chairman Mark Uyeda stated that the unit would not only safeguard investors but also support the growth of innovation by fostering a clear and efficient market. The unit will investigate fraudulent activities related to securities transactions, with a particular focus on scams involving social media, the dark web, and false websites. The SEC's move comes as the cryptocurrency industry faces continued challenges with fraud and scams. Recent events, such as the LIBRA meme coin scandal involving Argentine President Javier Milei, have highlighted the lack of regulatory clarity in the crypto space. The scam led to a significant loss for investors, with over $250 million wiped out after the coin was pumped and quickly dumped. Jupiter, the decentralized exchange involved in the incident, confirmed that the launch of the Milei-endorsed coin was widely known within the meme coin community, fueling concerns over insider trading and fraud. Last year, the SEC brought 33 enforcement actions against crypto-related fraud, securing penalties totaling $8.2 billion. A large portion of these penalties came from the SEC's case against Terraform Labs and its founder, Do Kwon. The SEC's aggressive stance under the Biden administration has been marked by increased efforts to regulate digital assets and protect investors from scams. However, some industry figures believe the SEC's regulatory approach needs refinement. Nic Puckrin, co-founder of The Coin Bureau, criticized the lack of regulatory clarity, particularly concerning meme coins, which he says have been prone to scams and pump-and-dump schemes. Despite the challenges, the SEC's new unit aims to provide better oversight and transparency as it continues to address the growing complexities of the cryptocurrency and emerging tech sectors.
