SEC Quorum Rule Change Means One Commissioner Could Approve Crypto Rules

SEC now operates with just two of its five commissioners

After U.S. lawmakers failed to pass a comprehensive digital asset market structure bill, financial regulators have stepped up efforts to regulate crypto companies and offerings through their own proposed rules. But the two main agencies responsible — the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) — are both short on leadership. The SEC, which normally has five commissioners, now has only two: Chair Paul Atkins and former Acting Chair Mark Uyeda. Commissioner Hester Peirce left earlier in October.

The CFTC situation is even thinner. Michael Selig has been the only Senate-confirmed chair and commissioner since December 2025, meaning one person currently holds the full decision-making power at that agency as well. As of October 13, the White House had not announced any new nominations for either body.

Key numbers

• The SEC and CFTC each have five commissioner seats by design. The SEC currently fills two, the CFTC fills one.
• Only three individuals — Atkins, Uyeda, and Selig — effectively decide crypto regulation across the U.S. for the $3 trillion crypto market.
• Two of those three, Atkins and Selig, were nominated by President Donald Trump.
• The SEC released a new quorum rule on September 30 that took effect on October 2.

What the new quorum rule changes

The SEC's September 30 final rule, described by the agency as promoting "flexibility and finality of agency rulemaking," reduces the number of commissioners needed to form a quorum to just one person when only two commissioners are present in many cases.

Robin Wigglesworth, writing in a Financial Times opinion piece on October 5, noted that with just two commissioners remaining, if one recuses themselves or is unavailable, a single commissioner would be enough to pass a formal rule covering America's multitrillion-dollar securities markets.

Uyeda defends the change

Mark Uyeda published his own Financial Times op-ed on October 12 responding to critics. He said the SEC's commitment to its mission has not changed despite the thin leadership. Uyeda explained that the rule change clarifies the Commission can establish a quorum when all but one commissioner is disqualified from a particular matter.

Uyeda pushed back against the characterization that the SEC was hastily changing the rule so the remaining commissioners could "have their way," calling that comparison misleading.

Both agencies are writing rules instead of waiting for Congress

Both the SEC and CFTC have proposed rules aimed at regulating crypto in the absence of legislation from Congress. The SEC proposed safe harbor rules in August that would shield certain tokens from being treated as "investment contracts" — a legal classification under securities law. The CFTC followed in October, with Selig saying the agency would use existing statutory authorities to address crypto regulation through proposed rules on exchanges.

Atkins told reporters on October 2 that more regulatory proposals for crypto are on the horizon.

What is confirmed

The SEC now has two commissioners and the CFTC has one, far below their intended five-member structure. The SEC's new quorum rule went into effect on October 2. Both agencies have proposed crypto-related rules in the past two months. No new nominations for either agency had been announced as of October 13.

What is still unclear

The White House had not announced nominations for the SEC or CFTC as of Tuesday, October 13. The timing and number of future appointments remain unknown, meaning the rulemaking process could stay in the hands of just one person at each agency for months or longer. Congress still has time to vote on the Digital Asset Market Clarity (CLARITY) Act, but some experts doubt lawmakers will advance the bill during a lame duck session between the 2026 midterm elections and the January swearing-in of the next Congress.

Why this matters for crypto investors

The SEC and CFTC oversee how crypto companies and offerings are regulated in the U.S. When those agencies have only a handful of decision-makers, rules that shape the legal treatment of tokens, exchanges, and other crypto products can move faster — and with less diversity of opinion. The combination of an urgent need to regulate a $3 trillion market and a nearly empty leadership bench creates a situation where a single person could potentially carry crypto rules through the regulatory process.

Sources

• Cointelegraph