U.S. SEC Revises Quorum Rules, Impacting Cryptocurrency Regulation

On September 30, the U.S. Securities and Exchange Commission (SEC) implemented new rules that reduce the quorum requirement to just one commissioner for most decisions, effective October 2. This change is intended to enhance the flexibility and finality of the SEC's rule-making processes. The move comes amid a leadership vacuum at the SEC, following the resignation of Commissioner Hester Peirce, leaving only Chairman Paul Atkins and former Acting Chairman Mark Uyeda as the remaining commissioners, while the agency is authorized to have five.

The situation is similarly critical at the U.S. Commodity Futures Trading Commission (CFTC), where Michael Selig has been the sole Senate-confirmed chairman and commissioner since December 2025. Both regulatory bodies were originally designed to operate with five commissioners. Earlier in August, the SEC proposed a safe harbor for certain tokens to avoid being classified as 'investment contracts,' while the CFTC indicated plans to advance cryptocurrency regulation through proposed rules concerning exchanges.

Concerns have been raised about the implications of having only two active commissioners at the SEC. A commentary published by the Financial Times highlighted that if one commissioner were to recuse themselves or become unable to fulfill their duties, a single commissioner could unilaterally enact rules affecting a securities market valued in the trillions of dollars. In response, Uyeda affirmed the SEC's ongoing commitment to its regulatory mission, clarifying that the new quorum rules allow for continued governance even when most commissioners are recused.

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Source: KLEA News