SEC staffing gaps could ease crypto rulemaking in the U.S.

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SEC staffing and crypto rulemaking

Highlights

The SEC's quorum change, effective Oct. 2, allows formal rule approval by one commissioner when only two are serving, enhancing rulemaking flexibility.
Vacant commissioner seats at the SEC and CFTC mean single individuals may direct digital asset rulemaking for months, heightening regulatory influence amid congressional inaction.
Delayed passage of the CLARITY Act leaves the crypto sector's regulatory direction to agency-driven proposals, potentially shaping exchange and token rules before Congressional action.

Quorum changes reshape rulemaking path

As reported by Cointelegraph, the SEC and CFTC are both advancing proposals that appear to fill the gap left by stalled congressional legislation on cryptocurrency oversight. The SEC proposes a safe harbor in August to keep some tokens from being treated as investment contracts, while the CFTC follows in October with exchange-related proposals that Chair Michael Selig says rely on the agency's existing statutory authorities.

At the SEC, Chair Paul Atkins and former Acting Chair Mark Uyeda remain after Commissioner Hester Peirce departs earlier this month. At the CFTC, Selig is the only Senate-confirmed chair and commissioner since December 2025, even though both agencies are designed to have five commissioners.

On Sept. 30, the SEC releases a final rule that takes effect on Oct. 2 and lowers quorum requirements in some cases to one commissioner when only two are serving. The agency says the change promotes flexibility and finality in rulemaking, raising the possibility that a single commissioner could approve formal rules if another member is recused or unavailable.

Uyeda pushes back on criticism in a Financial Times opinion piece published Sunday, saying the SEC's commitment to its mission remains unchanged and arguing the revision only clarifies how a quorum is established when all but one commissioner is disqualified from a matter. Chair Atkins also says on Oct. 2 that more crypto-related regulatory proposals are on the horizon.

Legislative delay raises regulatory stakes

As of Tuesday, the White House has not announced nominations to fill vacant SEC and CFTC seats, leaving the rulemaking process potentially in the hands of one person at each agency for months or longer. That leadership gap increases the practical influence of regulators as Washington continues to debate the boundaries of crypto oversight.

Congress still has time to vote on the Digital Asset Market Clarity, or CLARITY, Act, which sits at the center of the dispute over market structure. But some experts do not expect lawmakers to advance the bill during a lame duck session between the 2026 midterm elections and the swearing-in of the next session in January.

For the crypto sector, that means regulatory direction is increasingly tied to agency action rather than new legislation. The result could shape exchange rules, token treatment and enforcement standards across the broader U.S. digital asset market before Congress sets a final framework.

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