Financial regulators are stepping up efforts to establish rules governing cryptocurrency companies and offerings following the failure of US lawmakers to pass a comprehensive digital asset market structure bill. However, both primary regulators face significant leadership gaps that are shaping how these rules take shape.
The Securities and Exchange Commission currently has only two commissioners remaining: Chair Paul Atkins and former Acting Chair Mark Uyeda, following Commissioner Hester Peirce's departure. The Commodity Futures Trading Commission is in a more critical position, with Michael Selig serving as the only Senate-confirmed chair and commissioner since December 2025. Both agencies are designed to have five commissioners each.
In recent months, both agencies have proposed rules intended to address cryptocurrency regulation. The SEC proposed rules in August to provide companies with safe harbor from tokens being classified as investment contracts, while the CFTC followed in October with proposed rules on crypto exchanges, with Selig indicating the agency would use its existing statutory authorities.
Quorum Rule Changes Enable Single-Commissioner Decisions
On September 30, the SEC implemented a rule change that took effect October 2, reducing quorum requirements for agency rulemaking. The new rule allows just one commissioner to establish a quorum in many cases when only two commissioners are present.
This change drew criticism, with some observers noting that a single commissioner could potentially pass formal rules affecting the multitrillion-dollar securities market. However, Mark Uyeda responded that the rule "clarifies that the Commission can establish a quorum if all but one commissioner is disqualified from a matter," emphasizing that the change was designed to address scenarios where commissioners may need to recuse themselves.
Congress Delays Digital Asset Legislation
As of the time of reporting, the White House had not announced nominations for empty SEC and CFTC seats, potentially leaving regulatory decisions concentrated among one person at each agency for extended periods. Meanwhile, Congress still has the opportunity to vote on the Digital Asset Market Clarity Act, though some observers question whether lawmakers will advance the legislation during a lame duck session.
