SEC, CFTC Move to Rewrite Crypto Rules Amid Vacancies, Raising Fears of Power Concentration

Concerns are mounting that a small number of commissioners could steer US crypto regulation as congressional action on market-structure legislation remains stalled.

Cointelegraph reported on Oct. 13 that only three commissioners across the US Securities and Exchange Commission and the Commodity Futures Trading Commission are currently responsible for key regulatory decisions. Both agencies are supposed to have five commissioners each, but prolonged vacancies have raised concerns that the regulatory direction of the roughly $3 trillion digital-asset market could be determined by just a few officials.

The SEC has only two commissioners left: Chairman Paul Atkins and Mark Uyeda. Vacancies increased after Hester Peirce stepped down earlier this month. At the CFTC, Acting Chairman Michael Selig has been the only Senate-confirmed commissioner since December 2025. Two of the three current commissioners across the two agencies were nominated by President Donald Trump.

Against that backdrop, both agencies are pressing ahead with crypto rulemaking by using existing legal authority, separate from congressional legislation. In August, the SEC proposed a regulatory safe harbor that would allow companies to avoid having certain tokens classified as investment contracts. The CFTC also began work this month on exchange-related rules, and Selig has said he would use the agency's authority under current law to flesh out a framework for crypto oversight. Atkins also signaled on Oct. 2 that additional regulatory proposals are forthcoming.

The issue has drawn further attention after the SEC recently eased its quorum requirements. The agency revised the related rules on Sept. 30, with the changes taking effect on Oct. 2. Under the new framework, if certain conditions are met, a single commissioner can constitute a quorum when only two commissioners remain. That has fueled concern that rulemaking authority could become concentrated in the hands of a small number of officials.

Uyeda defended the move as necessary for the agency's normal operations. In a Financial Times opinion piece, he wrote that the revised standard clarified how the SEC could form a quorum when other commissioners are unable to take part in deliberations on specific matters. He rejected the view that the rule change was meant to let a small number of commissioners decide regulation at their own discretion.

As of Oct. 13, the White House had not announced additional nominees to fill vacancies at the SEC and CFTC. That means the current structure, with only a handful of commissioners in place, could remain in place for the time being.

Congress has also yet to complete work on the CLARITY Act, a bill meant to govern crypto market structure. Some experts believe meaningful progress will be difficult before a new Congress is seated in January 2027, after the November 2026 midterm elections.