SEC Scales Back Crypto Crackdown Unit As Elon Musk’s DOGE Targets Regulator

The US Securities and Exchange Commission (SEC) is downsizing and rebranding its crypto enforcement unit, signaling a shift away from its aggressive crackdown on the industry.

Once nearly doubled under former SEC Chair Gary Gensler, the SEC’s crypto task force unit will now shrink to around 20 specialists and focus on broader financial crimes, including AI-related fraud and cybersecurity threats.

The move comes as Elon Musk’s Department of Government Efficiency (DOGE) prepares to audit the agency for wasteful spending.

Previously called the Crypto Assets and Cyber Unit, the scaled back SEC division is now the Cyber and Emerging Technologies Unit, according to a Feb. 20 press release.

SEC Crypto Task Force Scaled Down

In 2022, former SEC Chair Gary Gensler said that the crypto task force was almost doubling to 50 people. In the recent press release, the securities regulator said that the renamed unit will only include “approximately 20 fraud specialists and attorneys across multiple SEC offices.” 

The overhauled unit will also clear the way for “innovation to grow,” said Acting Chair Mark Uyeda in a statement. “It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies,” he added.

Although the unit will still hunt for “fraud involving blockchain technology and crypto assets,” it will also watch for unlawful uses of artificial intelligence (AI), hacks and other cybersecurity crimes.

Elon Musk’s DOGE Expands Federal Agency Audits To The SEC

The change in the SEC’s crypto unit comes shortly after the Department of Government Efficiency (DOGE), led by billionaire Tesla and SpaceX founder Elon Musk, announced that it will audit the SEC for any wasteful spending and potential fraud.

DOGE is looking for help from the general public!

Please DM insight for reducing waste, fraud, and abuse, along with any helpful insights or awesome ideas, to the relevant DOGE affiliates (found on the Affiliates tab). For example, @DOGE_USDA, @DOGE_SSA, etc.
We will add…

— Department of Government Efficiency (@DOGE) February 17, 2025

Although DOGE has not given a specific date for when the audit will be performed, the scaling back of the SEC’s crypto unit could be a proactive move on the regulator’s part with DOGE expected to show up in the next few days.

The shift away from aggressive enforcement action in the crypto space also aligns with US President Donald Trump’s campaign promises to make the US the “crypto capital” of the world.

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