Key SEC Appointment: Crypto Proponent Moloney to Head Corporate Finance Department

‍U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins appointed James Moloney on Wednesday to head the agency's Division of Corporation Finance. This influential department is responsible for reviewing IPO applications and corporate disclosures. Moloney, a "veteran supporter of cryptocurrency," will become the new head of the department.

Moloney is currently a partner at the law firm Gibson, Dunn & Crutcher. He worked at the SEC from 1994 to 2000, where he focused on mergers and acquisitions and financial reporting. He will assume his new role next month, succeeding current Acting Director Cicely LaMothe, who will return to her previous position as Deputy Director.

Moloney will oversee the company’s finance department, where core responsibilities include reviewing corporate earnings reports, executive compensation disclosures, and overseeing corporate compliance with accounting standards.

Moloney will oversee the company’s finance department, where core responsibilities include reviewing corporate earnings reports, executive compensation disclosures, and overseeing corporate compliance with accounting standards.

In recent months, the department has further expanded its role in shaping the SEC's digital asset regulatory thinking, issuing guidance that clearly distinguishes the regulatory boundaries between memecoins, stablecoins, and securities. This stance has embroiled the SEC in a "jurisdictional dispute" with the U.S. Commodity Futures Trading Commission (CFTC), and the division of cryptocurrency regulatory authority between the two agencies is still under discussion. In response, Moloney stated that he plans to promote sensible, pragmatic, and effective regulatory measures that will reduce the disclosure burden on companies while ensuring investors have access to accurate information. His appointment comes as the U.S. Congress considers the Clarity Act, which could transfer primary regulatory authority for cryptocurrencies to the CFTC while still requiring the SEC and CFTC to jointly develop relevant rules. Atkins praised Moloney's return to the SEC, citing his combination of experience within the SEC and private practice as significant advantages.

Atkins said: "I look forward to working with Jim (Moloney), Cicely and the rest of the Division of Corporation Finance to modernize and improve existing rules."

This appointment highlights the SEC's growing focus on cryptocurrency regulation, as regulators face pressure to clarify the rules governing digital assets.

With Moloney taking the helm, the SEC's Division of Corporation Finance is expected to play a key role in developing disclosure requirements that will directly impact how companies planning to go public disclose their cryptocurrency exposure, thereby shaping the regulatory compliance path for cryptocurrencies in the public markets.