SEC Key Appointment: Veteran Supporter of Crypto Assets Moloney Takes Charge of the Company's Finance Department

Source: cryptoslate

Compiled by: Blockchain Knight

The Chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, appointed James Moloney to head the agency's Division of Corporation Finance on Wednesday. This influential division is responsible for reviewing IPO application documents and corporate disclosures. Moloney, as a "senior advocate for cryptocurrency," will become the new head of this division.

Moloney is currently a partner at Gibson, Dunn & Crutcher LLP, having served at the SEC from 1994 to 2000, where he focused on mergers and acquisitions and financial reporting.

He will take office next month, succeeding the current acting director Cicely LaMothe, who will return to her original position as deputy director.

The finance department that Moloney is about to take charge of has core responsibilities that include reviewing the company's revenue reports, disclosing executive compensation, and overseeing the company's compliance with accounting standards.

In recent months, the department's role in shaping the SEC's regulatory approach to digital assets has further expanded, releasing relevant guidelines that clearly distinguish the regulatory boundaries between Memecoins, stablecoins, and securities.

This position has put the SEC in a "jurisdictional dispute" with the Commodity Futures Trading Commission (CFTC), and the two agencies are still debating the division of regulatory authority over cryptocurrencies. In this regard, Moloney stated that he plans to promote wise, pragmatic, and effective regulatory measures that ensure investors receive accurate information while alleviating the disclosure burden on companies.

His appointment comes at a time when the U.S. Congress is reviewing the Clarity Act, a bill that could transfer primary regulatory authority over cryptocurrencies to the CFTC, while still requiring the SEC to work jointly with the CFTC to formulate relevant rules.

Atkins expressed appreciation for Moloney's return to the SEC, stating that his combination of experience within the SEC and private practice background is an important advantage.

Atkins stated: "I look forward to working with Jim (i.e., Moloney), Cicely, and other members of the company's finance department to modernize and improve the existing rules."

This appointment highlights the SEC's increasing emphasis on cryptocurrency regulation, as regulatory agencies are currently under pressure to clarify the rules for digital asset regulation.

With Moloney taking office, the SEC's corporate finance department is expected to play a key role in formulating information disclosure requirements, which will directly affect how companies planning to go public disclose their cryptocurrency exposure, thereby shaping the compliance path for cryptocurrency in the public market.