SEC and CFTC to drop to 3 crypto regulators after resignations

Regulators overseeing much of the U.S. crypto market are set to operate with fewer commissioners just as lawmakers fall short of passing long-awaited legislation. The SEC is expected to lose Commissioner Hester Peirce later this year, leaving the commission with only two commissioners—both Republicans—while the CFTC continues to be chaired by a single commissioner.

Peirce, a commissioner at the Securities and Exchange Commission for eight years, will leave the agency on Oct. 2, according to a report from Cointelegraph. Her departure arrives about two months before the end of an 18-month extension for her second term and will be only the second time in U.S. history that the SEC has operated with two commissioners.

Key takeaways

• The SEC is set to operate with two commissioners after Hester Peirce’s planned exit on Oct. 2, reducing bipartisan balance.
• At the CFTC, Chair Michael Selig has led as the sole commissioner since December 2025, after acting chair Caroline Pham departed.
• Both agencies are advancing crypto policy largely through rulemaking and regulatory interpretation while Congress has not passed the proposed CLARITY Act.
• White House officials told CNBC they plan to nominate replacements for CFTC vacancies “in the near future,” but no nominations have been announced publicly for either agency.
• Senate Democrats have criticized the pace and approach, arguing the administration wants control while not working “in good faith” with Congress.

SEC shrinks to a two-commissioner panel

Hester Peirce’s exit is the latest in a narrowing leadership picture for U.S. financial regulators. As of the change, the SEC would be left with Chair Paul Atkins and Commissioner Mark Uyeda—both Republicans—forming the final two-person panel expected to be part of a five-commissioner structure once vacancies are filled.

While Peirce has been widely recognized in the industry for her comparatively permissive stance toward digital assets, her departure also changes the internal balance of the commission. The SEC had previously been able to function with two commissioners only once in U.S. history, underscoring how unusual the coming configuration will be.

Cointelegraph reports that it reached out to the SEC for comment on potential nominations but did not receive an immediate response.

CFTC continues with a single chair

Leadership at the Commodity Futures Trading Commission has been even more concentrated. Cointelegraph notes that CFTC has been led by Chair Michael Selig as the only commissioner since December 2025, following the departure of acting chair Caroline Pham.

In response to questions included in Cointelegraph’s reporting, a CFTC spokesperson said that Selig “welcomes new Commissioners to the CFTC upon their nomination and confirmation by the US Senate” and added that the agency is “more than equipped to also oversee [its] part of the crypto market.”

Even with a lack of additional commissioners, the CFTC has continued its work in areas affecting digital assets. But observers may view the current structure as limiting how quickly the commission can align policy decisions with evolving market questions—particularly on jurisdiction and disclosure issues—without a broader panel to deliberate.

Why vacancies matter for crypto rulemaking

With the SEC and CFTC missing key commissioners, both agencies are still advancing crypto regulation through approaches that do not require new statutes passed by Congress. Instead of new laws, regulators rely on interpretation of existing federal authority—an approach that can produce uneven outcomes across agencies and create uncertainty for token issuers and intermediaries.

Cointelegraph reports that many in the industry had been urging lawmakers to pass the Digital Asset Clarity (CLARITY) Act earlier this month. However, the bill failed in the Republican-controlled Senate, leaving the legal framework for digital asset oversight tied to existing rules and agency-specific interpretations.

According to Cointelegraph’s earlier coverage, the SEC has issued staff guidance on how it interprets federal law as it applies to investment contracts. On a parallel track, the CFTC has also advanced its view of compliance expectations—specifically in the context of blockchain recordkeeping requirements—through its regulatory agenda rather than a legislative fix.

The absence of the CLARITY Act is important because it would have shifted and clarified responsibilities between agencies. Without Congress stepping in, market participants are left watching how each regulator translates overlapping statutes into enforcement priorities and compliance standards.

Nominations stalled amid political pressure

Under federal law, the President is the only person authorized to nominate replacements to fill the SEC and CFTC leadership vacancies. Cointelegraph notes that the White House has not announced any nominations or signaled intent to nominate additional members to the financial agencies.

CNBC reported on Sept. 4 that White House officials have been vetting four candidates to fill empty CFTC commissioner seats, but it did not name the individuals. A White House official cited by CNBC indicated that President Donald Trump intends to nominate members to both agencies “in the near future.”

The process matters not only for internal agency staffing but also for how quickly the commissions can move toward—or away from—consensus on contentious crypto issues. A fuller commission can mean more deliberation, additional perspectives, and potentially more stable regulatory positions.

Senate Democrats have criticized the administration’s approach. In a June letter referenced by Cointelegraph—where Senate Democrats wrote to Trump and Majority Leader John Thune regarding the SEC, CFTC, and other agencies—they argued that Congress designed these commissions to be bipartisan and intended to require cooperation, while the Trump administration appeared to aim for control with “little interest” in working in good faith with Congress.

The letter underscores the political tension around regulator independence and the pace at which vacancies are filled—two factors that can directly affect the regulatory certainty digital asset companies are trying to plan around.

Earlier coverage from Cointelegraph noted that the SEC and CFTC have pursued different interpretive paths in the absence of the CLARITY Act, including SEC staff guidance on investment contracts and CFTC efforts tied to blockchain recordkeeping.

For investors, traders, and compliance teams, the near-term focus is less on market speculation and more on institutional capacity: when vacancies are filled, whether commissioners align on digital asset jurisdiction, and whether future rulemaking converges—or continues to diverge—across the SEC and CFTC. The next signal to watch is whether the White House advances nominations after the departures, and how Congress responds if similar legislation is reintroduced when the CLARITY Act fails again.