How the SEC’s lack of leadership could facilitate crypto rulemaking
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.
Recent SEC rule changes concerning quorum requirements could streamline the agency's approach to crypto regulation without a market structure bill. Lawmakers were unable to pass a comprehensive digital asset regulation bill, prompting regulators to take action. The SEC and CFTC, the two main regulators, struggle with a shortage of leadership, with only three key individuals now in charge of overseeing the $3 trillion crypto market.
At the SEC, Chair Paul Atkins and former Acting Chair Mark Uyeda remain, while the CFTC has only Michael Selig as a Senate-confirmed chair and commissioner since December 2025. The SEC proposed rules on August 2nd to protect companies from tokens being classified as "investment contracts," and the CFTC followed in October, with Selig stating they would use existing statutory authorities to regulate crypto via proposed rules.
The SEC's recent rule change, effective October 2nd, reduces the number of commissioners needed for a quorum to just one person in many cases, making it easier for the agency to pass formal rules. This development raises concerns about the lack of leadership at both agencies and the potential for crypto regulation decisions to be made by a single individual.
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