Crypto Journalist
Anas Hassan
Crypto Journalist
Share
Cicely LaMothe, the Securities and Exchange Commission’s deputy director of Corporation Finance, has retired after a 24-year tenure that included shepherding seven major crypto guidance documents through the agency.
The SEC announced her departure yesterday, marking the exit of a senior official whose crypto-related policy work spanned stablecoins, liquid staking, and meme coins during a period of intense regulatory debate over digital assets.
LaMothe joined the Division of Corporation Finance in 2002 and held multiple leadership positions before becoming deputy director for disclosure operations in 2022.
She served as acting director until Paul Atkins appointed Jim Moloney to lead the division in September 2025.
Crypto Guidance Defined LaMothe’s Final Years at SEC
LaMothe oversaw the release of seven CF Staff Statements addressing rapidly evolving crypto matters, including liquid staking, stablecoins, mining activities, meme coins, and crypto exchange-traded products.
The guidance documents provided clarity on disclosure requirements as digital asset companies sought to navigate SEC registration processes.
“After more than two decades at the SEC, I depart with a deep sense of honor and gratitude for the opportunity to serve the American public,” LaMothe said in the agency’s announcement.
“The work has been incredibly challenging and rewarding, and I have learned immensely from the dedicated individuals who commit themselves daily to this critical mission.“
Beyond crypto policy, LaMothe expanded accommodations for companies submitting draft registration statements and drove recommendations on accelerating filings with mandatory arbitration provisions.
She issued over 25 new and updated Compliance and Disclosure Interpretations covering clawbacks, deSPACs, and Rule 10b5-1 plans.
LaMothe Faced Congressional Scrutiny Over Tron’s Nasdaq Debut
LaMothe’s role drew attention in September when Senator Jeff Merkley and Representative Sean Casten questioned her oversight of Tron’s reverse merger onto Nasdaq.
The lawmakers challenged the SEC’s February decision to pause enforcement proceedings against Tron founder Justin Sun, who later took the company public in July through a reverse merger.
Merkley and Casten suggested Sun’s investments in Trump family crypto ventures, including World Liberty Financial and the Official Trump memecoin, may have influenced the case’s suspension.
They also raised national security concerns about Tron’s alleged ties to the Chinese government.
The lawmakers asked LaMothe and Chair Atkins whether Tron met rigorous listing standards and how the SEC could protect investors through any Sun settlement.
During that time, their letter also highlighted broader questions about foreign crypto companies accessing US exchanges through similar merger structures.
Retirement Comes Amid Sweeping SEC Policy Shifts
LaMothe’s departure follows dramatic changes at the SEC under Atkins, who took over in April after Gary Gensler’s resignation.
The agency has dropped nearly 60 percent of crypto enforcement cases since Trump’s January inauguration, including high-profile actions against Coinbase, Kraken, and Binance.
In September, Atkins told Fox Business the SEC now issues warning notices before enforcement actions, rejecting Gensler’s lawsuit-first approach.
He said most tokens are not securities and support tokenized asset trading with the same legal rights as underlying instruments.
The agency also launched a Crypto Task Force and is developing an innovation exemption designed to support crypto firms experimenting with blockchain-based services.
Atkins said the measure could be finalized by year-end, despite many economic, seasonal, and democrats obstacles along the way.
Meanwhile, Senate leaders are racing to pass the Responsible Financial Innovation Act before 2026.
The bill would clarify SEC and CFTC jurisdiction over digital assets, establish a joint advisory committee, and protect DeFi developers from securities laws if protocols remain decentralized.
LaMothe’s retirement also coincides with mass departures from the SEC.
Reuters data shows the agency lost up to 19 percent of full-time staff in key divisions during May, prompting Representative Maxine Waters to demand oversight hearings with Atkins.
Waters questioned whether the SEC maintains sufficient human capital to accomplish its mission following what she called “unprecedented politicization” under the Trump administration.
