How the SEC’s Lack of Leadership Could Facilitate Crypto Rulemaking
Written by Turner Wright, staff writer Edited by Robert Lakin, staff editor
Published on Oct 13, 2026
A recent change in the SEC’s rules on quorum could make it easier for the agency to amend its approach to crypto regulation in the absence of a market structure bill.
After US lawmakers failed to pass a comprehensive digital asset market structure bill, financial regulators stepped up efforts to change rules around the oversight and enforcement of crypto companies and offerings. However, the two primary regulators, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), are understaffed at the leadership level.
Market Landscape:
- SEC: Two commissioners — Chair Paul Atkins and former Acting Chair Mark Uyeda — remain following the departure of Commissioner Hester Peirce.
- CFTC: Michael Selig is the only Senate-confirmed chair and commissioner since December 2025, while the agencies are intended to have five commissioners each.
Both agencies have proposed rules that appear to fill the gap left by Congress in regulating cryptocurrencies. The SEC proposed rules to provide companies with a safe harbor from tokens being treated as “investment contracts” in August, while the CFTC followed suit in October.
Quorum Rule Change:
On Sept. 30, the SEC further simplified regulatory processes with a new quorum rule that took effect on Oct. 2. This change reduces the number of commissioners required for a quorum to just one person in many cases, especially when only two commissioners are present, and one might recuse themselves from a particular issue.
Debate:
This change has sparked debate. Robin Wigglesworth, in an op-ed for the Financial Times, suggests that having just one commissioner decide on rules for the $3 trillion crypto market raises concerns about fairness and transparency.
Mark Uyeda, in his own Financial Times op-ed, defends the SEC’s actions, emphasizing that the rule change simply clarifies the commission’s existing authority and maintains the agency’s commitment to its mission.
As of Tuesday, the SEC’s new quorum rule remains in effect, setting the stage for further discussion and action on crypto regulation.