The US State Department plans to establish a bureau of cyberspace and digital policy in the face of a growing hacking problem, specifically a surge of ransomware attacks on US infrastructure.
State Department spokesperson Ned Price said a Senate-confirmed ambassador at large will lead the bureau.
Hackers have struck numerous US companies this year.
One such attack on pipeline operator Colonial Pipeline led to temporary fuel supply shortages on the US East Coast. Hackers also targeted an Iowa-based agricultural company, sparking fears of disruptions to Midwest grain harvesting.
Two weeks ago the Treasury Department said suspected ransomware payments totalling US$590 million (A$787.6 million) were made in the first six months of this year.
It put the cryptocurrency industry on alert about its role fighting ransomware attacks.