SEC Quorum Rule Could Accelerate Crypto Rulemaking

The SEC quorum rule took effect on 2 October, the day Hester Peirce left the agency, leaving Chair Paul Atkins and Mark Uyeda as its only commissioners. In certain circumstances, the change allows one commissioner to establish a quorum when only two commissioners are serving and the other is disqualified, potentially enabling measures to advance with fewer members involved. The SEC says the rule clarifies how it can operate when commissioners are unavailable or must recuse themselves; critics warn it could concentrate authority. The SEC quorum rule comes as US agencies pursue digital-asset oversight without comprehensive legislation. The SEC has proposed a token safe-harbour framework, and Atkins has signalled more crypto proposals may follow. The CFTC, which has only one Senate-confirmed commissioner, Chair Michael Selig, has also outlined plans to address crypto exchanges under its existing authority. No nominees to fill agency vacancies had been announced in the summaries. For crypto traders, agency-led rulemaking could bring changes to market oversight sooner, including measures that may be favourable to the industry. But decisions made by a small number of officials may also increase regulatory uncertainty. The CLARITY Act, a proposed crypto market-structure bill, is unlikely to advance before the next congressional session, potentially extending this period of agency-led rulemaking.