SEC quorum rule could ease crypto rulemaking with two leaders

The Securities and Exchange Commission’s new quorum rule could allow one commissioner to approve formal rules in many cases when only two commissioners are serving. The change comes as the SEC and the Commodity Futures Trading Commission pursue cryptocurrency rules without new legislation from Congress.

The SEC released the rule on Sept. 30, and it took effect Oct. 2. It reduces the number of commissioners needed for a quorum to one when two commissioners are serving, including cases in which one commissioner is disqualified from a matter.

The SEC currently has two commissioners: Chair Paul Atkins and former Acting Chair Mark Uyeda. Commissioner Hester Peirce left the agency earlier in October. The White House had not announced nominees for the vacant SEC positions as of Oct. 13.

Uyeda wrote that the rule clarifies the SEC’s ability to form a quorum when all but one commissioner is disqualified from a matter. He also wrote that the agency’s commitment to its mission remains unchanged despite its reduced leadership.

Both the SEC and CFTC are legally structured to have five commissioners. The CFTC currently has one Senate-confirmed chair and commissioner, Michael Selig, who has held the position since December 2025.

The SEC proposed a safe harbor for companies issuing tokens in August. The proposal would set conditions under which tokens would not be treated as investment contracts. In October, Selig outlined plans for the CFTC to use its existing legal authority to propose rules for cryptocurrency exchanges. Atkins said on Oct. 2 that more crypto-related regulatory proposals were expected.

The agencies’ actions followed lawmakers’ failure to pass a broad digital asset market structure bill. The Digital Asset Market Clarity Act, known as the CLARITY Act, remains under consideration. Some experts do not expect Congress to advance it during the lame-duck period after the 2026 midterm elections and before the next congressional session begins in January.

The reduced number of commissioners means that SEC and CFTC decisions could be made by a small number of officials. Atkins and Selig were nominated by President Donald Trump. Uyeda was appointed to the SEC before Trump’s current administration.

The SEC’s quorum change has drawn criticism because one commissioner could, in some circumstances, approve rules affecting the country’s securities markets. Uyeda rejected that interpretation, writing that the revision was intended to clarify the agency’s ability to act when commissioners are disqualified, rather than give remaining officials unrestricted authority.

No additional SEC or CFTC nominations had been announced as of Oct. 13. The agencies’ rulemaking efforts could therefore continue while both have leadership vacancies.