Cicely LaMothe, who served for a long time as Deputy Director of the Division of Corporation Finance at the U.S. Securities and Exchange Commission (SEC), officially ended her term in March 2025. During her leadership, the division issued several important interpretative documents that helped clarify the application of existing laws to new digital assets. These documents particularly addressed memecoins and staking, which had become active topics of discussion in the industry.
Who is Cicely LaMothe and Her Role at the SEC
LaMothe held a key position in the Division of Corporation Finance, where she participated in reviewing corporate filings and shaping staff views on the legal classification of digital assets. Under her leadership, the division emphasized a methodical analysis of the Howey test and other legal benchmarks to align new crypto projects with existing legislation. Although staff statements do not replace formal rules, they became a reference point for legal teams and developers.
Regulating Memecoins Under LaMothe's Leadership
One notable achievement was the 2024 staff statement on memecoins, which clarified that merely belonging to meme culture does not automatically make a token a security. Whether a memecoin falls under securities regulation depends on the economic realities surrounding its creation and distribution, including profit expectations and the role of project initiators. This statement helped distinguish community tokens from offerings disguised as memes to circumvent regulations.
The SEC and Staking Regulation
Another important document prepared under LaMothe's guidance focused on analyzing staking and "staking-as-a-service" programs, where staff evaluated whether such programs constitute investment contracts. The focus was on the nature of the provider's involvement and promises made to participants; centralized custodial services, where users hand over control to a third party expecting returns, are more likely subject to regulation. In contrast, non-custodial, decentralized models require a different legal assessment.
Cicely LaMothe's Legacy and the Future of Crypto Regulation
LaMothe's work took place amid intense industry development and active discussions among regulators and lawmakers. Her staff statements did not establish new rules but provided practical guidance until formal regulations emerged, influencing legal practice and market decisions. Professor Alan Michaels from Georgetown Law emphasized: "Staff interpretations like those led by LaMothe provide critical market stability."
Why This Matters
If you mine or hold tokens, understanding the directions set by SEC staff statements helps assess regulatory risks and compliance requirements. Key positions on memecoins and staking do not directly affect prices but influence which projects may come under oversight and which practices require legal refinement. Even without new rules, such interpretations shape regulator expectations and enforcement practices.
What to Do?
For miners with any number of devices, it is useful to follow simple and clear steps to reduce operational and legal risks. Below are practical recommendations you can apply immediately.
- Check the nature of tokens: prefer networks and projects with transparent distribution models and no promises of "guaranteed profits" from third-party operations.
- Avoid custodial schemes without clear contractual terms: if a service requires handing control of funds to a third party in exchange for income, assess legal risks in advance.
- Keep documentation: save staking participation terms and token distribution descriptions—this will ease communication with legal counsel if needed.
- Monitor official clarifications: staff statements remain effective until repealed or replaced by new rules, so it is helpful to read and consider them when making decisions.
For a broader overview of regulatory policy changes, see the 2025 policy review, which compiles key initiatives. It is also useful to compare these guidelines with discussions on U.S. regulation to understand shifting regulator priorities.