SEC Eases Quorum Rule, Allowing One Commissioner to Advance Crypto Rulemaking

The US Securities and Exchange Commission has relaxed its quorum requirement, allowing a single commissioner under certain conditions to move forward with rulemaking related to digital assets.

Cointelegraph reported on October 13 that the SEC released a final rule on September 30 changing its quorum requirement. The rule took effect on October 2.

Under the revision, one commissioner can constitute a quorum if only two SEC commissioners remain and certain conditions are met. Still, a single commissioner is not allowed to vote on every rulemaking matter.

The SEC and the Commodity Futures Trading Commission are currently moving ahead with regulatory decisions affecting the roughly $3 trillion crypto market with a combined three commissioners. Both agencies are designed to have five commissioners each.

With the Digital Asset Market Structure Act stalled in Congress, the SEC and CFTC are pursuing their own rulemaking under existing legal authority. The CFTC also said it plans to advance a proposal on crypto exchange regulation in October.

The White House has yet to announce additional nominees to fill vacancies at the two agencies. As a result, decision-making power over crypto rulemaking could remain concentrated in the hands of a small number of commissioners, Cointelegraph reported.