US Crypto Regulators Face Crisis as Leadership Teams Shrink
The SEC and CFTC are facing a crisis as they operate with reduced leadership teams. Hester Peirce, also known as 'Crypto Mom', will step down from the SEC on October 2, leaving Chair Paul Atkins and Commissioner Mark Uyeda as the sole remaining officials. This marks the second time in American history that the SEC has functioned with only two commissioners.
The CFTC is also facing a leadership shortfall, having operated under the sole leadership of Chair Michael Selig since December 2025. Despite having five commissioner positions available, the administration has not submitted any nominations to address the vacant spots at either regulatory body.
The crisis comes as Congress failed to advance the CLARITY Act, which aimed to establish clearer crypto regulatory boundaries by transferring power from the SEC to the CFTC. The measure's failure means that both agencies will continue governing cryptocurrency markets through individual agency directives and interpretive guidance.