Today, the USB protocol is among the most widely used protocols. However, the mass-proliferation of USB has led to a threat vector wherein USB devices are assumed innocent, leaving computers open to an attack. Malicious USB devices can disguise themselves as benign devices to insert malicious commands to connected end devices. A rogue device appears benign to the average OS, requiring advanced detection schemes to identify malicious devices. However, using system-level hooks, advanced threats may subvert OS-reliant detection schemes. This thesis showcases USB-Watch, a hardware-based USB threat detection framework. The hardware can collect live USB traffic before the data can be altered in a corrupted OS. Behavioral analysis of USB devices allows for a generalizable anomaly detection classifier in hardware that can detect abnormal behavior from USB devices. The framework tested achieves an ROC AUC of 0.99 against a testbed of live USB devices.