Congressional attempts to adopt a broad digital-asset market-structure bill have stalled, leaving the United States without a clear legislative framework for the roughly $3 trillion crypto sector. In response, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have intensified their rulemaking efforts, but both agencies are grappling with severe leadership shortfalls.

Shrinking commissions at the SEC and CFTC

The SEC currently operates with only two commissioners: Chair Paul Atkins and Mark Uyeda, who previously served as acting chair. The departure of Commissioner Hester Peirce earlier this month left the agency one seat short of the five-member panel mandated by law. At the CFTC, Michael Selig remains the sole Senate-confirmed chair and commissioner, a situation that has persisted since December 2025. Both bodies were originally designed to have five commissioners each, providing a broader range of viewpoints and checks on decision-making.

Rule proposals filling the legislative gap

In the absence of congressional action, the SEC issued a proposal in August that would grant a safe-harbor to token issuers, aiming to keep certain digital assets from being classified as investment contracts. The CFTC followed with a set of October proposals that would extend its existing statutory authority to regulate cryptocurrency exchanges. SEC Chair Atkins hinted on October 2 that additional regulatory initiatives were on the horizon.

Quorum rule change lowers the bar for approval

On September 30, the SEC adopted a final rule that took effect on October 2, amending its quorum requirements. The amendment permits a single commissioner to constitute a quorum when only two commissioners are present, effectively allowing one person to adopt binding regulations if the other recuses or is unavailable. Financial Times columnist Robin Wigglesworth argued that this could enable a lone regulator to dictate policy for the nation’s multitrillion-dollar securities markets.

Commissioner Uyeda responded in a separate op-ed, asserting that the agency’s commitment to its mandate remains steadfast and that the quorum revision simply clarifies how the commission can proceed when most members are disqualified from a particular matter.

No new nominations on the horizon

As of the latest reporting, the White House has not announced any appointments to fill the vacant SEC or CFTC seats. This stalemate could leave each agency’s rulemaking in the hands of a single commissioner for an extended period, potentially months, depending on when the vacancies are addressed. While Congress still retains the option to pass the Digital Asset Market Clarity (CLARITY) Act, many analysts doubt that the legislation will advance before the lame-duck session following the 2026 midterms and the subsequent congressional turnover.

Why it matters

The concentration of regulatory authority in a handful of officials raises questions about the robustness of oversight for a market valued in the trillions. With limited internal dissent and a quorum rule that can be satisfied by one commissioner, the SEC and CFTC are positioned to enact sweeping policies without the broader consensus traditionally required. Stakeholders across the crypto ecosystem—exchanges, issuers, and investors—must monitor these developments closely, as the resulting rules could shape market practices, compliance costs, and the overall trajectory of digital-asset innovation in the United States.