Peirce's Exit Puts SEC Crypto Agenda in Hands of Two Commissioners

Hester Peirce's departure from the Securities and Exchange Commission (SEC) on October 2 has left two commissioners in charge of finalizing the agency's crypto agenda. Chair Paul Atkins and Commissioner Mark Uyeda will now handle a proposal to create tailored Securities Act registration exemptions for investment contracts involving crypto assets.

The SEC can legally operate with two commissioners, according to Rule 200.41, which permits a quorum when fewer than three members hold office. A federal appeals court upheld this arrangement in 1996, after the agency made an enforcement-related decision with only two commissioners present.

Regulation Crypto Assets is still open for public comment until October 20, and the proposed rule includes two tailored exemptions: one for up to $5 million over four years and another for up to $75 million in any 12-month period. The SEC must review comments, decide whether to revise the draft, and vote on a final rule before the new exemptions can operate.