Key facts
- The SEC amended its quorum rule, allowing one commissioner to pass formal rules if only two are present.
- The SEC and CFTC face leadership shortages, with only two commissioners at the SEC and one at the CFTC.
- The SEC proposed a safe harbor rule for tokens in August.
- The CFTC proposed rules on exchanges in October.
- The White House has not announced nominations to fill the vacant commissioner seats at either agency.
Following the failure of U.S. lawmakers to pass a comprehensive digital asset market structure bill, financial regulators are increasing efforts to shape the oversight of the cryptocurrency market through rule changes. However, leadership vacancies at both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) could significantly influence the process.
The SEC currently has only two commissioners, Chair Paul Atkins and former Acting Chair Mark Uyeda, after Commissioner Hester Peirce's departure. The CFTC has even fewer, with Michael Selig as the sole Senate-confirmed commissioner since December 2025. Both agencies are intended to have five commissioners.
These agencies have been proposing rules to regulate cryptocurrencies in the absence of legislative action. The SEC put forth a proposal in August to offer companies a safe harbor from tokens being classified as "investment contracts." The CFTC followed in October with proposed rules on exchanges, with Selig stating the agency would use its "existing statutory authorities." Atkins indicated on October 2 that additional crypto regulatory proposals are anticipated.
On September 30, the SEC enacted a rule change that could expedite its rulemaking process. This amendment alters quorum requirements, allowing for a quorum with just one commissioner if only two are present, a move intended to "promote flexibility and finality of agency rulemaking." This change, effective October 2, means a single commissioner could potentially approve rules impacting the vast U.S. securities markets.
Uyeda, in a Financial Times op-ed, defended the rule change, stating the SEC's mission remains intact and that the revision clarifies the commission's ability to proceed even when commissioners must recuse themselves. He argued against characterizations of the change as a "hasty revamp" for commissioners to "have their way."
As of Tuesday, the White House had not announced any new nominations for the SEC and CFTC. This situation could leave rulemaking authority in the hands of a single individual at each agency for an extended period. While Congress could still pass the Digital Asset Market Clarity (CLARITY) Act, some experts doubt its advancement during the upcoming lame-duck session.