The failure of US lawmakers to pass a comprehensive digital asset market structure bill has pushed financial regulators to take the lead in shaping crypto rules. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are now stepping up their efforts, but both agencies are severely understaffed at the leadership level.
At the SEC, only two commissioners, Chair Paul Atkins and former Acting Chair Mark Uyeda, remain after Commissioner Hester Peirce's departure earlier this month. The CFTC's situation is even more dire, with Michael Selig as the sole Senate-confirmed chair and commissioner since December 2025. Both agencies are intended to have five commissioners each.
Despite the lack of leadership, both agencies have proposed rules to regulate the $3 trillion crypto market. The SEC introduced a safe harbor rule for tokens in August, while the CFTC followed with proposals on exchanges in October. Atkins hinted at more regulatory proposals on the horizon.
The SEC's recent rule change, effective October 2, has further streamlined the rulemaking process. The agency reduced the number of commissioners required for a quorum to just one person if only two are present. Critics argue this could allow a single commissioner to make decisions affecting the vast securities markets. However, Uyeda defended the rule change, stating it clarifies the process when commissioners are disqualified from a matter.
As of Tuesday, the White House had not announced any nominations to fill the vacant seats at the SEC and CFTC, potentially leaving rulemaking in the hands of just one person at each agency for months. Congress still has time to vote on the Digital Asset Market Clarity (CLARITY) Act, but experts are skeptical about its advancement in the lame-duck session between the 2026 midterm elections and the next session in January.