SEC’s Leadership Gap May Slow, Shift Crypto Regulation Approach

With US lawmakers failing to advance a comprehensive digital asset market structure bill, regulators have moved to fill the legislative gap themselves—though the practical ability of the SEC and CFTC to do so is being tested by an unusually thin leadership bench.

Reporting on the situation, Cointelegraph notes that both agencies have proposed crypto-focused rules that appear intended to substitute for parts of Congressional action. Yet leadership staffing constraints mean that, in some circumstances, rulemaking could effectively proceed with minimal commissioner involvement.

Key takeaways

• The SEC and CFTC have both proposed crypto rules in the absence of a sweeping market structure law, but leadership vacancies raise questions about decision-making capacity.
• At the SEC, Chair Paul Atkins and former Acting Chair Mark Uyeda have remained in place after Commissioner Hester Peirce’s departure earlier this month, leaving fewer than the typical full commission.
• The SEC’s recently adjusted quorum rule can reduce the number of commissioners required to pass certain rules to as low as one person when only two commissioners are present and others are disqualified.
• At the CFTC, Michael Selig has been the only Senate-confirmed chair and commissioner since December 2025, leaving the agency short of its intended five-member structure.
• The fate of the market structure bill at the center of the controversy—Congress’s Digital Asset Market Clarity (CLARITY) Act—remains uncertain, with some experts skeptical of passage in a post-election window.

Why rulemaking is accelerating without a market structure law

After Congress did not deliver a comprehensive framework for digital asset oversight, attention shifted to regulators’ rulemaking authority. According to the reporting, the SEC and CFTC have both advanced proposed approaches that target key questions—such as how certain token offerings should be classified and how trading venues should be regulated—without relying on a new statute.

The SEC’s track has included proposals intended to give companies a pathway for tokens to avoid being treated as “investment contracts.” In August, the SEC proposed rules that would offer a safe harbor framework for certain tokens. The CFTC followed with its own proposed framework in October, with Michael Selig indicating the agency would rely on “existing statutory authorities,” including through proposed rules addressing exchanges.

SEC leadership has also signaled additional activity. On Oct. 2, SEC Chair Paul Atkins said “more regulatory proposals [were] on the horizon” for crypto.

Leadership staffing: the SEC’s reduced commissioner count

The SEC’s situation has drawn scrutiny because commissioner departures can slow or concentrate decision-making. Cointelegraph’s account highlights that Commissioner Hester Peirce’s exit earlier this month left the commission with two principal figures—Chair Paul Atkins and Mark Uyeda (former Acting Chair). At the same time, the SEC is designed to operate with more commissioners, and the reporting frames this leadership shortage as consequential for crypto rulemaking.

While the SEC has been moving ahead with regulatory proposals, the number of commissioners available at any given moment matters because formal agency actions can require quorum and compliance with internal procedural rules.

The SEC’s quorum change and the “one commissioner” argument

One of the most significant developments described in the article is the SEC’s adjustment to quorum requirements. On Sept. 30, the SEC issued a final rule—effective Oct. 2—that, in certain circumstances, reduces the number of commissioners required for quorum to just one person if the agency is left with only two commissioners and one is disqualified or otherwise unavailable.

Financial Times columnist Robin Wigglesworth criticized the change in an Oct. 5 op-ed, arguing that—given the possibility that one commissioner may need to recuse—the revised rule could allow a single remaining commissioner to pass formal rules affecting US multitrillion-dollar securities markets. The underlying concern is not merely that decisions could be made quickly, but that the depth of deliberation could be structurally constrained.

Mark Uyeda responded with his own Financial Times op-ed, defending the SEC’s quorum revision. He argued that the SEC’s mission commitment remains unchanged and stated that the revision “clarifies that the Commission can establish a quorum if all but one commissioner is disqualified from a matter.” Uyeda added that characterizing the update as a rushed effort to let remaining commissioners “have their way” is misleading and compared the criticism to fictional dystopian regimes.

In practical terms, the controversy centers on a tension investors and market participants may be weighing: speed and continuity of rulemaking versus broader participation and checks that typically come with a fuller commission.

CFTC staffing is even thinner, raising parallel concerns

The CFTC’s staffing challenges appear even more severe. Cointelegraph reports that Michael Selig has served as the only Senate-confirmed chair and commissioner since December 2025. Like the SEC, the CFTC is intended to include five commissioners, so having only one Senate-confirmed member changes how observers might think about agency capacity and how quickly major policy initiatives can be advanced.

That matters because the CFTC has also proposed crypto rules using existing authorities, including a framework that would address exchanges. In this environment, staffing is not just a governance detail—it can become a key factor in whether contested rulemaking proceeds and how consistently policy directions evolve.

Where Congress fits: the CLARITY Act remains the unresolved pivot

The regulatory push comes amid uncertainty about Congressional action. The article points to the Digital Asset Market Clarity (CLARITY) Act, described as the legislation at the center of the debate. While Congress still technically has time to vote on the bill, Cointelegraph cites experts who do not see lawmakers advancing it during a lame duck period between the 2026 midterm elections and the start of the next Congress in January.

As of Tuesday, the article says the White House had not announced nominations to fill SEC and CFTC seats, potentially prolonging a period in which rulemaking decisions may rest with a small number of commissioners.

For crypto businesses and market participants, the immediate watch items are straightforward: whether additional commissioner nominations arrive to restore full capacity at the SEC and CFTC, and whether rulemaking outcomes—especially those tied to quorum—end up shaping compliance expectations faster than Congress can set a comprehensive market structure. Until staffing stabilizes and legislative momentum becomes clearer, the balance of power between agencies and lawmakers is likely to remain the central uncertainty.