A Key Architect of SEC Crypto Policy Retires as Cicely LaMothe Steps Down

The U.S. Securities and Exchange Commission (SEC) is losing one of its most influential figures of recent years. Cicely LaMothe, Deputy Director of the Division of Corporation Finance and a central force behind the agency’s evolving approach to cryptocurrencies, has announced her retirement. LaMothe confirmed the decision in a statement released in late December, describing her time at the SEC as “extremely demanding, but deeply rewarding,” and noting how much she learned from colleagues dedicated to protecting investors and maintaining market integrity.

Twenty-Four Years at the SEC and a Lasting Impact on Crypto Rules LaMothe’s departure closes a 24-year chapter at the SEC. Over that period, she held multiple senior roles and most recently served as Deputy Director overseeing disclosure matters. She also acted as head of the division until James Moloney was appointed director on September 30, 2025. In the past year in particular, LaMothe left a clear mark on crypto regulation. She was responsible for several key staff statements that shaped the regulatory landscape for digital assets. These included guidance clarifying that memecoins are not automatically classified as securities, as well as an official articulation of the Commission’s views on crypto staking.

A Respected Authority Beyond Digital Assets Her influence extended well beyond crypto. Sources within the SEC say LaMothe played an important role in steering policy guidance for companies preparing registration statements, helping to sharpen regulatory interpretations across traditional capital markets as well as emerging digital sectors. She joined the Division of Corporation Finance in 2002 after working in the private sector. A licensed certified public accountant, LaMothe holds a bachelor’s degree in accounting from Hampton University. Within the SEC, her retirement is widely seen as a significant loss—particularly at a time when the agency is striving for a more balanced and predictable regulatory stance toward the crypto industry.

A Shift in Tone at the SEC: ETFs, Lawsuit Rollbacks, and “Project Crypto” News of LaMothe’s retirement comes at a pivotal moment. The SEC is entering its second year of a more openly supportive and less confrontational posture toward the crypto ecosystem. Since the start of Donald Trump’s presidency and under new leadership, the Commission has approved listing standards for several cryptocurrency exchange-traded funds (ETFs). These approvals enabled the launch of ETFs tracking assets such as DOGE, SOL, and XRP—widely regarded as a major milestone for the digital asset industry. At the same time, the SEC has withdrawn multiple lawsuits against prominent crypto firms and launched an initiative known as “Project Crypto,” aimed at reviewing and updating the Commission’s rules governing digital assets.

A Broader Wave of Retirements and Expected Layoffs LaMothe is not the only senior official leaving the agency this year. In December, Nekia Hackworth Jones also concluded her tenure after holding key leadership roles in the SEC’s Enforcement Division, including Regional Director of the Atlanta office. In her farewell remarks, she praised colleagues for their unwavering commitment to investor protection and sound judgment. Compounding these leadership changes is a broader restructuring of the federal workforce. Earlier this year, the SEC signaled significant staff reductions. According to sources familiar with the matter, between 500 and 700 positions could be eliminated, with a large share of the cuts expected to affect enforcement, investigative, and legal teams.

Cicely LaMothe’s retirement thus symbolically closes one chapter in the evolution of U.S. crypto regulation—while raising new questions about how the SEC will navigate the next phase as digital assets continue to move closer to the financial mainstream.

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