The United States Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will soon operate with just three commissioners between them following the resignation of Republican Commissioner Hester Peirce from the SEC. Peirce, widely recognized in the digital asset sector for her crypto-friendly approach and often referred to as “Crypto Mom,” is leaving the agency nearly two months before her second term’s 18-month extension concludes. This marks only the second occurrence in US history in which the SEC has functioned with two commissioners instead of the anticipated five-person panel.
Leadership gaps at the SEC and CFTC
At the SEC, Chair Paul Atkins and Commissioner Mark Uyeda, both Republicans, will be the remaining members on the commission. The CFTC, another pivotal regulator overseeing much of the crypto industry, is currently led solely by Chair Michael Selig following the departure of acting chair Caroline Pham in December 2025.
Under federal law, US President Donald Trump is responsible for nominating replacements to fill leadership vacancies at both agencies. The White House has not yet announced new nominations or indicated plans to do so. All current members, except Uyeda who was nominated by President Joe Biden in 2022, were appointed by Trump.
A spokesperson for the CFTC stated that Selig “welcomes new Commissioners to the CFTC upon their nomination and confirmation by the US Senate,” and emphasized that the agency remains equipped to manage its share of digital asset regulation.
“Selig welcomes new Commissioners to the CFTC upon their nomination and confirmation by the US Senate and the agency is more than equipped to also oversee its part of the crypto market.”
White House officials conveyed that President Trump plans to nominate new commissioners to both agencies “in the near future.” Meanwhile, CNBC reported that four candidates are under consideration to fill open CFTC seats, although their identities were not disclosed.
In June, Senate Democrats addressed a letter to President Trump and Senate Majority Leader John Thune, noting that Congress established boards like the SEC and CFTC as bipartisan organizations with the mandate to regulate essential sectors of American life. The letter criticized the Trump administration for allegedly seeking full control over these agencies rather than cooperating with Congress.
Ongoing crypto regulation without the CLARITY Act
Both the SEC and CFTC continue to advance digital asset regulation through rulemaking in the absence of a full slate of commissioners. Recent calls by industry participants for Congress to pass the Digital Asset Clarity (CLARITY) Act gained momentum earlier this month, but the bill ultimately did not pass in the Senate, which is currently under Republican leadership.
The CLARITY Act was designed to bolster the CFTC’s authority over cryptocurrency regulation, effectively reallocating roles currently overseen by the SEC. With Congress declining to advance the bill, both agencies have maintained distinct approaches to enforcement and interpretation of federal laws as these pertain to digital assets.
Without the passage of the CLARITY Act, the SEC and CFTC have turned to rulemaking and staff guidance to manage digital asset oversight rather than waiting for new legislation.
The SEC has continued to issue staff guidance on investment contracts, while the CFTC has focused on clarifying how companies may use blockchain-based recordkeeping in compliance with federal standards.
The ongoing absence of nominated commissioners generates continued uncertainty for market participants, as both agencies interpret and implement regulations independently amidst a shifting leadership landscape.
Mini dictionary: Digital Asset Clarity (CLARITY) Act, draft legislation aiming to define which federal agency is responsible for oversight of cryptocurrencies and other digital assets, with the intention of providing more consistent regulatory guidance for the US crypto sector.
With only three total commissioners now overseeing the primary US regulators for digital assets—two at the SEC and one at the CFTC—calls have intensified for White House action to ensure more stable and effective oversight of the rapidly evolving sector.
